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Report of the Comptroller to the Governor of Virginia 


A Comprehensive Annual Financial Report 
For the Fiscal Year Ended June 30, 2015 



Terence R. McAuliffe 
Governor 

Richard D. Brown 
Secretary of Finance 


David A. Von Moll 
Comptroller 





Table of Contents 


Introductory Section 

Comptroller’s Letter of Transmittal to the Governor.6 

Certificate of Achievement for Excellence in Financial Reporting.17 

Organization of Executive Branch of Government.20 

Organization of Government - Selected Government Officials - Executive Branch.21 

Organization of the Department of Accounts.22 

Financial Section 

Independent Auditor's Report.24 

Management's Discussion and Analysis.27 

Basic Financial Statements 

Government-wide Financial Statements 

Statement of Net Position.40 

Statement of Activities.42 

Fund Financial Statements 

Balance Sheet - Governmental Funds.46 

Reconciliation of the Balance Sheet - Governmental Funds to the Government-wide 

Statement of Net Position.48 

Statement of Revenues, Expenditures, and Changes in Fund Balances - 

Governmental Funds.50 

Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund 

Balances - Governmental Funds to the Government-wide Statement of Activities.52 

Statement of Fund Net Position - Proprietary Funds.54 

Statement of Revenues, Expenses, and Changes in Fund Net Position - Proprietary Funds.56 

Statement of Cash Flows - Proprietary Funds.58 

Statement of Fiduciary Net Position - Fiduciary Funds.64 

Statement of Changes in Fiduciary Net Position - Fiduciary Funds.65 

Statement of Net Position - Component Units.68 

Statement of Activities - Component Units.70 

Index to the Notes to the Financial Statements.73 

Notes to the Financial Statements.74 

Required Supplementary Information 

Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - 

General and Major Special Revenue Funds.178 

Schedule of Changes in Employers' Net Pension Liability.182 

Schedule of Employer Contributions - Pension Plans.184 

Funding Progress for Other Postemployment Benefit Plans.188 

Schedule of Employer Contributions - Other Postemployment Benefit Plans.190 

Claims Development Information.192 

Combining and Individual Fund Statements and Schedules 
Nonmajor Governmental Funds 

Combining Balance Sheet - Nonmajor Governmental Funds.200 

Combining Statement of Revenues, Expenditures, and Changes in Fund Balance - 

Nonmajor Governmental Funds.204 

Schedule of Revenues, Expenditures, and Changes in Fund Balance - 

Budget and Actual - Nonmajor Special Revenue Funds.208 

Nonmajor Enterprise Funds 

Combining Statement of Fund Net Position - Nonmajor Enterprise Funds.212 

Combining Statement of Revenues, Expenses, and Changes in Fund Net Position - 

Nonmajor Enterprise Funds.216 

Combining Statement of Cash Flows - Nonmajor Enterprise Funds.220 

Internal Service Funds 

Combining Statement of Fund Net Position - Internal Service Funds.228 

Combining Statement of Revenues, Expenses, and Changes in Fund Net Position - 

Internal Service Funds.230 

Combining Statement of Cash Flows - Internal Service Funds.232 


2 Commonwealth of Virginia 












































Fiduciary Funds 

Combining Statement of Fiduciary Net Position - Private Purpose Trust Funds.238 

Combining Statement of Changes in Fiduciary Net Position - Private Purpose Trust Funds.240 

Combining Statement of Fiduciary Net Position - Pension and Other Employee Benefit 

Trust Funds.242 

Combining Statement of Changes in Fiduciary Net Position - Pension and Other 

Employee Benefit Trust Funds.246 

Combining Statement of Fiduciary Net Position - Investment Trust Fund.250 

Combining Statement of Changes in Fiduciary Net Position - Investment Trust Fund.251 

Combining Statement of Fiduciary Net Position - Agency Funds.252 

Combining Statement of Changes in Assets and Liabilities - Agency Funds.256 

Nonmajor Component Units 

Combining Statement of Net Position - Nonmajor Component Units.262 

Combining Statement of Activities - Nonmajor Component Units.270 

Debt Schedules 

Summary Schedule - Total Debt and Other Long-term Obligations of the Commonwealth.274 

Tax-Supported Debt and Other Long-term Obligations.275 

Debt and Other Long-term Obligations Not Supported by Taxes.276 

Authorized and Unissued Tax-Supported Debt.277 

Tax-Supported Debt-Annual Debt Service Requirements.278 

Tax-Supported Debt - Detail of Long-term Indebtedness.280 

Statistical Section 

Ten-Year Schedule of Revenues and Expenditures - Modified Accrual Basis - 

General Governmental Revenues by Source and Expenditures by Function.292 

Net Position by Component - Accrual Basis of Accounting.294 

Changes in Net Position - Accrual Basis of Accounting.296 

Changes in Fund Balance, Governmental Funds - Modified Accrual Basis of Accounting.300 

Fund Balance, Governmental Funds - Modified Accrual Basis of Accounting.302 

Comparison of General Fund Balance.304 

Personal Income Tax Rates.306 

Effective Tax Rates.306 

Personal Income Tax Filers and Liability by Income Level.307 

Personal Income by Industry.308 

Taxable Sales by Business Class.310 

Sales Tax Revenue by Business Class.312 

Ratios of Outstanding Debt by Type.314 

Ratios of General Obligation Bonded Debt Outstanding.315 

Computation of Legal Debt Limit and Margin.316 

Schedule of Pledged Revenue Bond Coverage - Primary Government 9(d) General Long-term Debt.318 

Schedule of Demographic and Economic Statistics.320 

Principal Employers.320 

State Employees by Function.322 

Operating Indicators by Function.324 

Capital Asset Statistics by Function.328 

Employees of the Department of Accounts.330 


Commonwealth of Virginia 3 













































Illustrations 


Figure 1 Annual Percentage Change in Nonfarm Payroll Employment, Fiscal Years 2010 - 2015.8 

Figure 2 Nonfarm Payroll Employment, Fiscal Years 2010 - 2015.9 

Figure 3 Annual Percent Change in Nonfarm Payroll Employment in Virginia’s MSAs, Fiscal Years 2010-2015.10 

Figure 4 Percentage Change in Personal Income, Fiscal Years 2010 - 2015. 11 

Figure 5 Civilian Unemployment Rate, Fiscal Years 2010-2015.11 

Figure 6 Civilian Unemployment Rate for Virginia’s MSAs, Fiscal Years 2010 - 2015.12 

Figure 7a Unemployment Rate by Locality, Fiscal Year 2015.12 

Figure 7b Unemployment Rate by Locality, Fiscal Year 2014.13 

Figure 8 Annual Percentage Change in Taxable Sales in Virginia, Fiscal Years 2010 - 2015.13 

Figure 9 Percentage Change in Housing Prices, Fiscal Years 2010 -2015. 14 

Figure 10 New Privately Owned Housing Units Authorized, Annual Percentage Change, 

Fiscal Years 2010-2015. 15 

Figure 11 Net Position as of June 30, 2015 and 2014.30 

Figure 12 Changes in Net Position for the Fiscal Years Ended June 30, 2015 and 2014.31 

Figure 13 Revenues by Source - Governmental Activities, Fiscal Year 2015.32 

Figure 14 Expenses by Type - Governmental Activities, Fiscal Year 2015.32 

Figure 15 Business-type Activities - Program Revenues and Expenses, Fiscal Year 2015.33 

Figure 16 Capital Assets as of June 30, 2015 (Net of Depreciation).35 

Figure 17 Outstanding Debt as of June 30, 2015 - General Obligation Bonds.36 


4 Commonwealth of Virginia 

























Introductory Section 


Comptroller’s Letter of Transmittal to the Governor 
Certificate of Achievement for Excellence in Financial Reporting 
Organization of Executive Branch of Government 
Organization of Government - Selected Government Officials - Executive Branch 

Organization of the Department of Accounts 


Commonwealth of Virginia 5 








COMMONWEALTH of VIRGINIA 


david a. von moll, cpa Office of the Comptroller p.o.box 1971 

COMPTROLLER RICHMOND, VIRGINIA 23218-1971 


December 15, 2015 

The Honorable Terence R. McAuliffe 
Governor of the Commonwealth of Virginia 
State Capitol 

Richmond, Virginia 23219 
Dear Governor McAuliffe: 

It is my pleasure to present the Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2015, in 
accordance with Section 2.2-813 of the Code of Virginia. This report consists of management’s representations concerning the 
Commonwealth of Virginia’s finances. Management assumes full responsibility for the completeness and reliability of all information 
presented. This report reflects my commitment to you, to the citizens of the Commonwealth, and to the financial community to 
maintain our financial statements in conformance with accounting principles generally accepted in the United States of America 
(GAAP) as established by the Governmental Accounting Standards Board (GASB). Data presented in this report is believed to be 
accurate in all material respects, and all disclosures that are necessary to enable the reader to obtain a thorough understanding of 
the Commonwealth’s financial activities have been included. 

The 2015 CAFR is presented in three sections. The Introductory Section includes this transmittal letter and organization charts 
for state government. The Financial Section includes the State Auditor’s Report, management’s discussion and analysis (MD&A), 
audited government-wide and fund financial statements and notes thereto, required supplementary information other than MD&A, 
and the underlying combining and individual fund financial statements and supporting schedules. The Statistical Section sets forth 
selected unaudited economic, financial trend, and demographic information for the Commonwealth on a multi-year basis. 

The Commonwealth’s management is responsible for the establishment and maintenance of internal accounting controls that 
ensure assets are safeguarded and financial transactions are properly recorded and adequately documented. To ensure that the 
costs of controls do not exceed the benefits obtained, management is required to use cost estimates and judgments to attain 
reasonable assurance as to the adequacy of such controls. The Commonwealth’s established internal controls fulfill these 
requirements and provide reasonable, but not absolute assurance, that the accompanying financial statements are free of material 
misstatement. 

In accordance with Section 30-133 of the Code of Virginia, the Auditor of Public Accounts has audited the Commonwealth’s 
financial statements for the year ended June 30, 2015. The audit was conducted in accordance with auditing standards generally 
accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United 
States. The auditor’s opinion is included in the Financial Section of this report. Audit testing for compliance with the Federal Single 
Audit Act Amendments of 1996 and the related OMB Circular A-133 is performed at the statewide level. The Commonwealth’s 
Single Audit Report will be issued at a later date. I would like to acknowledge the Auditor of Public Accounts’ staff for their many 
contributions to the preparation of this report. 

GASB Statement No. 34, Basic Financial Statements - and Management’s Discussion and Analysis - for State and Local 
Governments, requires that management provide a narrative introduction, overview and analysis to accompany the basic financial 
statements in the form of MD&A. This letter of transmittal is designed to complement the MD&A and should be read in conjunction 
with it. In addition to the financial analysis addressing the Commonwealth’s governmental and business-type activities, the MD&A 
focuses on the Commonwealth’s major funds: General, Commonwealth Transportation Special Revenue, Federal Trust Special 
Revenue, Literary Special Revenue, Virginia Lottery, Virginia College Savings Plan, and Unemployment Compensation. The 
Commonwealth’s MD&A can be found on page 27 immediately following the independent auditor’s report. 


6 Commonwealth of Virginia 




PROFILE OF THE GOVERNMENT 
Reporting Entity 

For financial reporting purposes, the Commonwealth’s reporting entity consists of (1) the primary government, (2) component 
unit organizations for which the primary government is financially accountable (blended component units), and (3) other component 
unit organizations for which the nature and significance of their relationship with the primary government is such that exclusion 
would cause the reporting entity’s financial statements to be misleading or incomplete (discrete component units). The funds and 
accounts of all agencies, boards, commissions, foundations, and authorities that have been identified as part of the primary 
government or a component unit have been included. Further information can be found in Note 1 .B. to the Financial Statements. 

Section 2100 of the GASB Codification of Governmental Accounting and Financial Reporting Standards describes the criteria 
for determining which organizations, functions, and activities should be considered part of the Commonwealth for financial reporting 
purposes. The basic criteria include appointing a voting majority of an organization’s governing body, as well as the 
Commonwealth’s ability to impose its will on that organization, or the potential for the organization to provide specific financial 
benefits to, or impose specific financial burdens on, the Commonwealth. The Commonwealth’s discretely presented major 
component units are the Virginia Housing Development Authority, Virginia Public School Authority, Virginia Resources Authority, 
and Virginia College Building Authority. 

The Commonwealth and its component units provide a wide range of services and funding to its citizens, including elementary, 
secondary and higher education; health and human services; economic development; environment and natural resources; public 
safety, corrections, and regulation; transportation; agriculture; and general government services. The financial activities associated 
with these services are reflected in both summary and detail throughout the CAFR. 

Budgetary Control 

In addition to the internal controls previously discussed, the Commonwealth maintains budgetary controls to ensure compliance 
with the legal provisions of the Commonwealth’s Appropriation Act, which reflects the General Assembly’s approval of a biennial 
budget. The financial transaction process begins with development and approval of the budget, after which budgetary control is 
maintained through a formal appropriation and allotment system. The budgeted amounts reflected in the accompanying financial 
statements represent summaries of agency budgets. 

The Commonwealth’s budget is prepared principally on a cash basis and represents appropriations as authorized by the 
General Assembly on a biennial basis at the program level. The Commonwealth monitors spending activity to ensure the 
expenditures do not exceed the appropriated amounts at the agency level. The State Comptroller maintains a central general 
ledger that records total appropriations and related expenditures for all agencies and institutions included in the approved budget. 
Systemic controls are in place to prevent disbursements that exceed authorized appropriations. Additional information regarding 
the Commonwealth’s budgetary process can be found in Note I.E. to the Financial Statements. 


Commonwealth of Virginia 7 




ECONOMIC REVIEW 


Local Economy 

Introduction 

This overview of the economy of the Commonwealth of Virginia was prepared by the Weldon Cooper Center for Public Service at 
the University of Virginia. In fiscal year 2015, Virginia’s economy expanded, albeit at a significantly slower pace than the nation. 
Employment growth registered a slight uptick from the previous fiscal year while the jobless rate continued to decline towards pre¬ 
recessionary levels. Economic indicators such as personal income and taxable sales saw significant improvement, while housing 
market indicators showed a mixed picture of accelerating home sales, slower price appreciation and declining building permits. 
Federal government spending uncertainty and a “new normal” of moderate national economic growth suggest that state economic 
growth will be modest in the coming fiscal year. 


Employment 

Virginia experienced its fifth consecutive year of employment growth in fiscal year 2015, albeit growing slower than the nation for the 
last four of those years (Figure 1). The fiscal year 2015 growth rate of 0.8 percent was a slight improvement from 0.3 percent the 
fiscal year before. Federal budget sequestration and the associated decreases in defense and non-defense federal spending 
continued to have an outsized impact on the state economy. However, easing in federal spending restrictions afforded by the 
Bipartisan Budget Act of 2013 sequestration agreement and more robust national growth contributed to slightly improved 
circumstances in fiscal year 2015. Conditions are likely to be less than optimal in the next fiscal year because of continued federal 
budget uncertainties related to sequestration budget caps, budget reauthorization, and the debt ceiling. A global economic 
slowdown and likely commencement of Federal Reserve Board monetary tightening present additional downside growth risks for 
the coming year. 


Figure 1 

Annual Percentage Change in Nonfarm Payroll Employment 

Fiscal Years 2010-2015 



8 Commonwealth of Virginia 







Virginia reached a significant jobs milestone in fiscal year 2015 with nonfarm payroll employment reaching 3,793,200. This number 
exceeded its fiscal year 2008 employment peak of 3,769,000 jobs for the first time. Figure 2 shows changes in Virginia’s nonfarm 
employment by industry for fiscal years 2010 through 2015 along with the employment change between fiscal years 2014 and 2015 
for Virginia and the U.S. Federal Government employment declined for the second straight fiscal year, but the loss of 1,000 jobs 
was significantly less than the 4,500 jobs lost the fiscal year before. Professional and Business Services, a sector sensitive to 
federal government contracting, recovered 2,500 jobs after sharp reductions the fiscal year before. The mining and logging sector 
also experienced jobs losses because of declining state coal mining activity resulting from low coal prices, competition from 
alternative fuel sources such as natural gas, and regulatory pressures. The only other sector to lose jobs was the information 
sector. Three sectors, education and health services, leisure and hospitality, and construction, accounted for 16,800 increased 
jobs, which constituted over half of the total state job gains. 


Figure 2 

Nonfarm Payroll Employment 

Fiscal Years 2010-2015 


Change, 

Fiscal Year 2014 to Fiscal Year 2015 

Virginia Employment (000) _ _ Virginia _ 

Number U.S., 


Industry* 

2010 

2011 

2012 

2013 

2014 

2015 

(000) 

Percent 

Percent 

Mining and logging 

10.1 

10.7 

11.1 

10.4 

9.8 

9.0 

(0.8) 

(8.2) 

1.7 

Construction 

184.1 

181.5 

177.3 

176.8 

177.1 

181.3 

4.2 

2.4 

5.0 

Manufacturing 

233.1 

230.0 

231.5 

231.2 

231.1 

232.9 

1.8 

0.8 

1.6 

Wholesale trade 

110.0 

111.2 

111.2 

111.4 

110.6 

111.5 

0.9 

0.8 

1.8 

Retail trade 

396.9 

400.1 

404.6 

406.6 

412.5 

413.2 

0.7 

0.2 

1.9 

Transportation and utilities 

112.0 

114.2 

115.4 

116.2 

117.8 

121.6 

3.8 

3.2 

3.3 

Information 

77.9 

75.0 

72.5 

71.4 

71.6 

70.7 

(0.9) 

(1.3) 

1.9 

Financial activities 

178.1 

180.6 

185.3 

190.9 

193.1 

194.1 

1.0 

0.5 

1.7 

Professional and business services 

641.3 

660.0 

673.3 

681.9 

676.5 

679.0 

2.5 

0.4 

3.5 

Education and health services 

458.0 

467.7 

473.6 

487.3 

493.6 

501.5 

7.9 

1.6 

2.3 

Leisure and hospitality 

339.6 

345.5 

354.1 

362.8 

368.6 

373.3 

4.7 

1.3 

3.1 

Other services 

184.9 

185.8 

190.0 

193.5 

194.7 

197.4 

2.7 

1.4 

1.5 

Federal government 

171.0 

174.6 

173.9 

175.2 

170.7 

169.7 

(1.0) 

(0.6) 

(0.2) 

State government 

153.1 

154.8 

157.9 

159.4 

159.6 

162.4 

2.8 

1.8 

0.4 

Local government 

379.4 

376.3 

379.5 

375.1 

375.2 

375.6 

0.4 

0.1 

0.3 

Total 

3,629.5 

3,668.0 

3,711.2 

3,750.1 

3,762.5 

3,793.2 

30.7 

0.8 

2.2 


Source: U. S. Bureau of Labor Statistics: details may not add due to totals due to rounding: some prior year numbers have been revised to reflect 
the incorporation of newly available and revised source data. 

* North American Industry Classification System 


Commonwealth of Virginia 9 




Figure 3 shows the annual percentage change in nonfarm employment for 10 of the 11 Metropolitan Statistical Areas (MSAs) in 
Virginia. The Kingston-Bristol MSA is not included in this table because most of it is located in Tennessee and data for this indicator 
are not reported separately for the Virginia portion of the MSA. Each of the MSAs added jobs in fiscal year 2015. Three metropolitan 
areas, Staunton-Waynesboro, Virginia Beach-Norfolk-Newport News, and Roanoke, experienced employment growth rates well 
below the state average. Of those three metro areas, the Virginia Beach-Norfolk-Newport News MSA continues to be severely 
impacted by federal budget sequestration with just 0.4 percent growth in fiscal year 2015. In contrast, Northern Virginia, another 
region highly sensitive to federal spending reductions, bounced back from job losses in fiscal year 2014 to 1.0 percent growth in 
fiscal year 2015. 


Figure 3 

Annual Percent Change in Nonfarm Payroll Employment in Virginia’s MSAs 

Fiscal Years 2010-2015 


Area 

2010 

2011 

2012 

2013 

2014 

2015 

Virginia 

-2.3% 

1.1% 

1.2% 

1.0% 

0.3% 

0.8% 

Metropolitan areas (a) 

Blacksburg-Christiansburg-Radford 

-3.6% 

0.9% 

2.5% 

1.7% 

1.1% 

2.1% 

Charlottesville 

-1.8% 

0.7% 

1.7% 

0.9% 

0.6% 

4.0% 

Harrisonburg 

-1.7% 

1.9% 

0.8% 

0.9% 

0.3% 

1.1% 

Lynchburg 

-4.1% 

-0.6% 

-0.8% 

0.3% 

0.3% 

1.1% 

Northern Virginia 

-0.7% 

1.9% 

1.9% 

1.5% 

-0.1% 

1.0% 

Richmond 

-3.2% 

0.8% 

2.0% 

1.8% 

1.3% 

1.3% 

Roanoke 

-2.8% 

0.3% 

1.0% 

0.9% 

0.8% 

0.7% 

Staunton-Waynesboro 

-3.9% 

0.1% 

0.5% 

0.0% 

1.0% 

0.2% 

Virginia Beach-Norfolk-Newport News (b) 

-2.5% 

0.0% 

0.6% 

1.1% 

0.6% 

0.4% 

Winchester (c) 

-2.6% 

3.1% 

2.7% 

1.8% 

2.1% 

2.4% 


Source: U. S. Bureau of Labor Statistics: some prior year numbers have been revised to reflect the incorporation 

of newly available and revised source data 

(a) Excludes Kingsport-Bristol MSA, most of which is located in Tennessee 

(b) Includes portion in North Carolina 

(c) Includes portion in West Virginia 


Personal Income 

Personal income provides the best currently available indicator of the health of Virginia’s economy. Changes in personal income 
are also strongly correlated with state government revenues such as income tax and retail sales tax collections. As shown in Figure 
4, personal income growth rebounded in Virginia to its highest rate (3.9 percent) in three years. Wages and salaries, which make up 
over half of Virginia total personal income, grew at a rate of 3.0 percent in fiscal year 2015. The next largest component is 
dividends, interest and rent, which expanded 3.7 percent. Among other components, transfer receipts grew 4.7 percent, 
supplements to wages and salaries expanded 1.9 percent, and proprietors’ income advanced 7.2 percent. 

Virginia’s personal income growth trajectory generally follows the nation. Its growth rate has lagged the nation since fiscal year 
2010, but this growth gap narrowed slightly in fiscal year 2015 to 0.6 percent from 1.0 percent in fiscal year 2014. 


10 Commonwealth of Virginia 




Figure 4 

Percentage Change in Personal Income 

Fiscal Years 2010-2015 


» Virginia M United States 



Unemployment 

Unemployment rates at both the state and national levels continued to improve in fiscal year 2015. Figure 5 shows that the 
unemployment rate in Virginia declined from 5.2 percent in fiscal year 2014 to 4.9 percent in fiscal year 2015, while the national rate 
decreased from 6.8 percent to 5.7 percent. These rates are significant improvements over the fiscal year highs of 7.2 percent and 
9.8 percent, respectively, for fiscal year 2010 realized in the aftermath of the 2007-09 recession. However, they are still higher than 
the 3.0 percent and 4.5 percent unemployment rates, respectively, achieved in fiscal year 2007 before the onset of the recession. 
The unemployment rate (i.e., the U-3 measure) only counts people as unemployed if they do not have jobs but are actively seeking 
employment. It does not count so-called discouraged workers and those marginally attached to the labor force. It also counts part- 
time workers as employed, even if they desire full-time employment. When an alternative measure of the unemployment rate is 
used that takes into account these additional factors (i.e., the U-6 measure), Virginia’s unemployment rate is 10.0 percent in fiscal 
year 2015 compared to 11.3 percent at the national level. These rates remain significantly elevated compared to the U-6 
unemployment rates of 6.0 percent and 8.2 percent, respectively, estimated for fiscal year 2007. 


Figure 5 

Civilian Unemployment Rate 

Fiscal Years 2010-2015 

■Virginia □ United States 



2010 2011 2012 2013 2014 2015 


Source: U.S. Bureau of Labor Statistics 


Commonwealth of Virginia 11 






Figure 6 shows unemployment rates for Virginia’s metropolitan and non-metropolitan regions. Unemployment rates for each of the 
11 metropolitan areas decreased in fiscal year 2015. These decreases continue a pattern of gradual improvement in each 
metropolitan area over the fiscal year 2010 to fiscal year 2015 period. Below statewide average unemployment rates were 
observed in the Northern Virginia MSA (4.1 percent), the Charlottesville MSA (4.3 percent), the Winchester MSA (4.5 percent), and 
the Staunton-Waynesboro MSA (4.7 percent). The metropolitan area unemployment rate was significantly lower than the non¬ 
metropolitan area unemployment rate. But, the non-metropolitan area unemployment rate also improved in fiscal year 2015 as it 
had in each of the previous four years. 


Figure 6 

Civilian Unemployment Rate for Virginia’s MSAs 

Fiscal Years 2010-2015 


Area 

2010 

2011 

2012 

2013 

2014 

2015 

Virginia 

7.2% 

6.7% 

6.4% 

5.8% 

5.4% 

4.9% 

Metropolitan Areas 

6.8% 

6.4% 

6.1% 

5.6% 

5.2% 

4.7% 

Blacksburg-Christiansburg-Radford 

8.6% 

7.5% 

6.8% 

6.5% 

5.7% 

5.1% 

Charlottesville 

6.4% 

6.1% 

5.8% 

5.2% 

4.7% 

4.3% 

Harrisonburg 

6.9% 

6.8% 

6.6% 

6.0% 

5.4% 

5.0% 

Kingsport-Bristol * 

9.1% 

7.7% 

7.3% 

6.8% 

6.3% 

5.5% 

Lynchburg 

7.9% 

7.4% 

7.0% 

6.5% 

5.9% 

5.4% 

Northern Virginia 

5.5% 

5.1% 

4.9% 

4.6% 

4.5% 

4.1% 

Richmond 

8.1% 

7.6% 

7.0% 

6.3% 

5.8% 

5.2% 

Roanoke 

7.7% 

7.1% 

6.6% 

6.0% 

5.5% 

4.9% 

Staunton-Waynesboro 

7.4% 

7.0% 

6.5% 

5.8% 

5.2% 

4.7% 

Virginia Beach-Norfolk-Newport News * 

7.5% 

7.3% 

7.1% 

6.4% 

5.9% 

5.4% 

Winchester * 

7.9% 

7.0% 

6.4% 

5.7% 

5.1% 

4.5% 

Non-metropolitan Areas 

10.0% 

9.4% 

8.6% 

8.1% 

7.4% 

6.5% 


Source: U. S. Bureau of Labor Statistics: some prior year numbers have been revised to reflect the incorporation of newly 
available and revised source data 
* Includes only the portion of the MSA located in Virginia 


Figures 7a and 7b show changes in the spatial pattern of unemployment in Virginia during the last two fiscal years using locality- 
level data. For fiscal year 2015, the highest unemployment rates were found in the Southwestern and South Central regions of the 
state. The Northern Neck, Delmarva Peninsula, and parts of Flampton Roads region also experienced unemployment levels above 
the statewide average of 4.9 percent. In comparison to fiscal year 2014 (shown in Figure 7b), many localities, most notably those 
within the Richmond metropolitan area and Roanoke and New River Valley regions, saw their unemployment rates fall below 5.0 
percent. 


Figure 7a 

Unemployment Rate by Locality 

Fiscal Year 2015 



Source: Virginia Employment Commission 


12 Commonwealth of Virginia 














Figure 7b 

Unemployment Rate by Locality 

Fiscal Year 2014 



Source: Virginia Employment Commission 


Taxable Sales 

Changes in state retail sales are represented here using information on taxable sales. This measure is a useful proxy for retail 
sales, but omits some goods (e.g., motor vehicles, motor fuel sales) that appear in the comparable national measure and includes 
some services (e.g., restaurant sales, lodging sales) not included in that measure. Figure 8 shows that taxable sales picked up in 
fiscal year 2015, rising from a post-recession low of 0.9 percent growth in fiscal year 2014 to 3.9 percent growth in fiscal year 2015. 
Taxable sales climbed to an all time high of $98.1 billion in nominal dollars and the highest level since the pre-recessionary 2007 
fiscal year in real dollars. 


Figure 8 

Annual Percentage Change in Taxable Sales in Virginia 

Fiscal Years 2010-2015 


6% 



2010 2011 2012 2013 2014 2015 


Source: Virginia Department of Taxation. 


Commonwealth of Virginia 13 






































Housing Market 


Housing market indicators provide a mixed picture of the health of Virginia’s housing market. According to Virginia Association of 
Realtor reports, sales of single family homes, townhomes, and condos increased from 97,982 units in fiscal year 2014 to 102,986 
units in fiscal year 2015. This constitutes a 5.1 percent rate of increase which compares to a 2.8 percent rate the fiscal year before. 
Housing prices published by the Federal Housing Finance Agency provide another measure of housing market conditions. Figure 9 
shows the percentage change in these housing prices for Virginia and the nation. Virginia housing prices appreciated 2.5 percent in 
fiscal year 2015, a downtick from 3.3 percent in fiscal year 2014 and 4.2 percent in fiscal year 2013. At the national level, housing 
prices grew 5.1 percent in fiscal year 2015, a decrease from the previous year’s rate of 7.0 percent. 


Figure 9 

Percentage Change in Housing Prices 

Fiscal Years 2010-2015 


♦ Virginia —■—United States 



Source: Federal Housing Finance Agency 


Current building permit data indicate that Virginia experienced a drop in new privately owned housing units authorized for 
construction in fiscal year 2015 of 3.4 percent (Figure 10). As in previous years, this rate is likely to be revised upwards slightly as 
rural jurisdictions that report building permits on an annual rather than monthly basis submit their data at the end of calendar year 
2015. Nationally, building permits increased at an 11.9 percent rate during the same period, reflecting gradual improvement in the 
national housing market. 


14 Commonwealth of Virginia 






Figure 10 

New Privately Owned Housing Units Authorized 
Annual Percentage Change 

Fiscal Years 2010-2015 


♦ Virginia M United States 



Source: U. S. Census Bureau 


Conclusion 

Fiscal year 2015 saw continued slow improvement in Virginia’s economy. The pace of employment growth picked up slightly and 
the unemployment rate eased. Personal income and taxable sales growth were also more robust. The Virginia housing market 
showed mixed results with home sales accelerating, housing price appreciation slowing, and building permit issuance turning 
negative. According to most available economic indicators, the state continued its recent pattern of lagging the nation. 

Because of its heavy reliance on federal government spending, the state faces some economic uncertainty going into the next fiscal 
year due to the unknown status of federal budget sequestration caps and the potential for congressional disagreements over raising 
the debt limit and reauthorizing the budget that could trigger partial government shutdowns. Other challenges may arise from 
changes in the national macroeconomic climate due to anticipated Federal Reserve rate increases, a strengthening dollar, and a 
global economic slowdown. On the other hand, the national economic recovery is supported by healthy consumer spending and an 
improved housing market that should form the basis of continued moderate national economic growth. 


MAJOR INITIATIVES 

The CAFR has received unmodified audit opinions from fiscal year 1986 through fiscal year 2014. During this period, the 
Commonwealth has also received the Government Finance Officers Association Certificate of Achievement for Excellence in 
Financial Reporting. While we are very proud of these unmodified audit opinions and awards, we must be mindful of the fact that 
they are not automatic. The successes of the State Comptroller’s office are directly attributable not only to the professionalism, 
experience and integrity of the State Comptroller’s technical and accounting personnel, but also to the professionalism, experience 
and integrity of the financial and accounting personnel throughout the Commonwealth. These major initiatives will support efforts to 
continue our legacy of quality financial management. 

Long-term Financial Planning 

In 1992, an amendment to the Constitution of Virginia required the establishment of a Revenue Stabilization Fund. Annually, 
revenue collections are evaluated to determine whether deposits are required to the Fund. Withdrawals can only occur if the 
general fund revenues appropriated exceed the revised general fund revenue forecast by more than 2.0 percent of the certified tax 
revenues collected in the most recently ended fiscal year. Additionally, a withdrawal from the Fund cannot compensate for more 
than one-half of the difference between the general fund appropriations and revised estimate nor can it exceed more than one-half 
of the Fund balance. Further, pursuant to the constitutional amendment of Article X, Section 8, effective January 1, 2011, the 
amount on deposit cannot exceed 15.0 percent of the Commonwealth’s average annual tax revenues derived from taxes on income 
and retail sales for the preceding three fiscal years. This is an increase of the previous limit of 10.0 percent. 


Commonwealth of Virginia 15 







Enterprise Application Project 


The Cardinal Project represents a shared vision between the offices of the Secretary of Transportation, Secretary of Finance 
and the Virginia Information Technologies Agency to replace the Commonwealth’s financial system (CARS) and the Virginia 
Department of Transportation’s (VDOT) financial system with a modern, enterprise-wide financial system (base financial system). 
The base financial system will provide a solid foundation for the Commonwealth to expand system functionality and facilitate better 
integration of key administrative systems across the state. This foundation will enable the Commonwealth to re-engineer activities 
to include taking advantage of shared services, increasing functionality for better fiscal management, and reducing redundant 
agency financial systems and related cost. The Cardinal Project will implement the base financial system in three phases. The first 
phase implemented VDOT’s planned functionality on December 5, 2011, and the second phase implemented the Commonwealth’s 
base financial system at the Department of Accounts (DOA) on October 1, 2012. The current phase of the project includes rolling 
Cardinal out to all other state agencies, at which time CARS will be retired. The remaining agencies have been divided into two 
waves, and the first wave was successfully implemented on October 1,2014. The second wave is currently planned for February 1, 
2016, with CARS being retired effective July 1,2016. I, as State Comptroller, chair the Cardinal Steering Committee, and DOA has 
assigned full-time resources to this project. 


AWARDS AND ACKNOWLEDGMENTS 

The Government Finance Officers Association of the United States and Canada (GFOA) awarded the Certificate of 
Achievement for Excellence in Financial Reporting to the Commonwealth for its CAFR for the fiscal year ended June 30, 2014. The 
Certificate of Achievement is a prestigious national award that recognizes conformance with the highest standards for preparation of 
state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish 
an easily readable and efficiently organized comprehensive annual financial report that conforms to program standards. Such 
reports must satisfy both accounting principles generally accepted in the United States of America and all applicable legal 
requirements. 

A Certificate of Achievement is valid for a period of one year. The Commonwealth has received a Certificate of Achievement for 
the last 29 consecutive years (fiscal years 1986-2014). I believe that this year’s report continues to conform to the Certificate of 
Achievement program requirements and we are submitting it to GFOA. 

This report could not have been prepared without the full cooperation of all state agencies within the Executive Branch, the 
Legislature, the Judiciary, the Component Units, and especially the dedication and professionalism of the financial reporting staff in 
the Department of Accounts. 


Respectfully submitted, 

David A. Von Moll 

Comptroller of the Commonwealth of Virginia 


16 Commonwealth of Virginia 




(& 

Government Finance Officers Association 

Certificate of 
Achievement 
for Excellence 
in Financial 
Reporting 

Presented to 

Commonwealth of Virginia 

For its Comprehensive Annual 
Financial Report 
for the Fiscal Year Ended 


June 30,2014 



Executive Director/CEO 


Commonwealth of Virginia 17 










18 Commonwealth of Virginia 







Commonwealth of Virginia 19 







As of June 30, 2015 


Attorney General 


Governor 

1 


Department of Law 


Chief of Staff 


Lieutenant Governor 


Interstate Organization Contributions 


Secretary of the Commonw ealth 


Office of the Inspector General 


Secretary of Administration 

Compensation Board 
Department of General Services 
Department of Human Resource Management 
Department of Elections 


Secretary of Agriculture and Forestry 

Virginia Agricultural Council 
Department of Agriculture and Consumer 
Services 

Department of Forestry 
Virginia Racing Commission 


Secretary of Commerce and Trade 

Board of Accountancy 
Department of Housing and Community 
Development 

Department of Labor and Industry 
Department of Mines, Minerals and Energy 
Department of Professional and Occupational 
Regulation 

Department of Small Business and Supplier 
Diversity 

Tobacco Indemnification and Community 
Revitalization Commission 
Virginia Economic Development Partnership 
Virginia Employment Commission 
Virginia Tourism Authority 


Secretary of Health and Human Resources 

Office of Children’s Services 
Department for Aging and Rehabilitative 
Services 

Department for the Blind and Vision Impaired 
Department for the Deaf and Hard-of-Hearing 
Department of Behavioral Health and 
Developmental Services 
Department of Health 
Department of Health Professions 
Department of Medical Assistance Services 
Department of Social Services 
Virginia Board for People with Disabilities 
Virginia Foundation for Healthy Youth 
Virginia Rehabilitation Center for the Blind and 
Vision Impaired 

Woodrow Wilson Rehabilitation Center 


Secretary of Education 

Christopher Newport University 
Department of Education 
Frontier Culture Museum of Virginia 
George Mason University 
Gunston Hall 

Institute for Advanced Learning and Research 
James Madison University 
Jamestown-Yorktown Foundation 
Longwood University 
New College Institute 
Norfolk State University 
Old Dominion University 
Radford University 
Richard Bland College 
Roanoke Higher Education Authority 
Southern Virginia Higher Education Center 
Southwest Virginia Higher Education Center 
State Council of Higher Education for Virginia 
The College of William and Mary 
The Library of Virginia 
The Science Museum of Virginia 
University of Mary Washington 
University of Virginia 
Virginia College Building Authority 
Virginia Commission for the Arts 
Virginia Commonwealth University 
Virginia Community College System 
Virginia Institute of Marine Science 
Virginia Military Institute 
Virginia Museum of Fine Arts 
Virginia Polytechnic Institute and State 
University 

Virginia School for the Deaf and Blind 
Virginia State University 


Secretary of Finance 

Department of Accounts 
Department of Planning and Budget 
Department of Taxation 
Department of the Treasury 
Treasury Board 


Secretary of Natural Resources 

Department of Conservation and Recreation 
Department of Environmental Quality 
Department of Game and Inland Fisheries 
Department of Historic Resources 
Marine Resources Commission 
Virginia Museum of Natural History 


Secretary of Public Safety and Homeland 
Security 

Commonwealth Attorneys’ Services Council 
Department of Alcoholic Beverage Control 
Department of Corrections 
Department of Criminal Justice Services 
Department of Emergency Management 
Department of Fire Programs 
Department of Forensic Science 
Department of Juvenile Justice 
Department of Military Affairs 
Department of State Police 
Virginia Correctional Enterprises 
Virginia Parole Board 


Secretary of Technology 

Innovation and Entrepreneurship Investment 
Authority 

Virginia Information Technologies Agency 


Secretary of Transportation 

Department of Aviation 

Department of Motor Vehicles 

Department of Rail and Public Transportation 

Department of Transportation 

Motor Vehicle Dealer Board 

Virginia Port Authority 


Secretary of Veterans and Defense Affairs 

Department of Veterans Services 


20 Commonwealth of Virginia 



























Organization of Government 
Selected Government Officials - Executive Branch 




Commonwealth of Virginia 21 














































As of December 15, 2015 












































Financial Section 


Independent Auditor’s Report 
Management’s Discussion and Analysis 
Basic Financial Statements 
Required Supplementary Information 
Combining and Individual Fund Statements and Schedules 


Commonwealth of Virginia 23 








Commontoealti) of ^trgtnta 

Auditor of Public Accounts 


Martha S. Mavredes, CPA P.O. Box 1295 

Auditor of Public Accounts Richmond, Virginia 23218 


December 15, 2015 


The Honorable Terence R. McAuliffe 
Governor of Virginia 

The Honorable John C. Watkins 
Chairman, Joint Legislative Audit 
And Review Commission 


INDEPENDENT AUDITOR’S REPORT 


Report on Financial Statements 

We have audited the accompanying financial statements of the governmental activities, the business-type activities, the 
aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the 
Commonwealth of Virginia, as of and for the year ended June 30, 2015, and the related notes to the financial statements, which 
collectively comprise the Commonwealth’s basic financial statements as listed in the table of contents. 

Management’s Responsibility for the Financial Statements 

Management is responsible for the preparation and fair presentation of these financial statements in accordance with 
accounting principles generally accepted in the United States of America; this includes the design, implementation, and 
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material 
misstatement, whether due to fraud or error. 

Auditor’s Responsibility 

Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial 
statements of certain blended and aggregate discretely presented components units of the Commonwealth, which are discussed in 
Note I.B. These component units account for the following percentages of total assets and deferred outflows of resources, 
revenues, and net position of the opinion units affected. 


Opinion Unit 

Total Assets 
and Deferred 
Outflows 

Net Position 

Revenues 

Business-Type Activities 

7.308% 

0.091% 

- 

Aggregate Remaining Fund Information 

0.392% 

0.002% 

- 

Aggregate Discretely Presented Component Units 

29.224% 

24.094% 

9.993% 


Those financial statements were audited by other auditors whose reports thereon have been furnished to us, and our 
opinions, insofar as it relates to the amounts included for certain component units discussed in Note 1 .B. are based on the reports 
of the other auditors. 


24 Commonwealth of Virginia 




We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the 
standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the 
United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the 
financial statements are free of material misstatement. The financial statements of the Hampton Roads Sanitation District 
Commission, Science Museum of Virginia Foundation, Virginia Museum of Fine Arts Foundation, Library of Virginia Foundation, 
and Danville Science Center, Inc., which were audited by other auditors upon whose reports we are relying, were audited in 
accordance with auditing standards generally accepted in the United States of America, but not in accordance with Government 
Auditing Standards . 

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial 
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material 
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers 
internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit 
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the 
entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of 
accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating 
the overall financial statement presentation. 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a reasonable basis for our 
audit opinions. 

Opinion 


In our opinion, based on our audit and the reports of other auditors, the financial statements referred to above present 
fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the 
aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the 
Commonwealth of Virginia as of June 30, 2015, and the respective changes in financial position and, where applicable, cash flows 
thereof for the year then ended, in accordance with accounting principles generally accepted in the United States of America. 

Emphasis of Matter 


Change in Accounting Principle 

The Commonwealth of Virginia’s basic financial statements for the year ended June 30, 2015, reflect the provisions of the 
Governmental Accounting Standards Board’s (GASB) Statement No. 68, Accounting and Financial Reporting for Pension - an 
amendment of GASB Statement No. 21 and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to 
the Measurement Date - an amendment of GASB Statement No. 68. The Commonwealth of Virginia implemented the requirements 
of GASB Statements No. 68 and 71 in accordance with their required effective date. See Notes 2, 13 and 15 in the accompanying 
financial statements for the impact of the standards’ implementation. Our opinion is not modified with respect to this matter. 

Correction of 2014 Financial Statements 

As discussed in Note 2 of the accompanying financial statements, the fiscal year 2014 governmental activities, business- 
type activities, component units, Commonwealth Transportation major special revenue fund, and proprietary funds financial 
statements have been restated to correct misstatements. Our opinion is not modified with respect to these matters. 

Change in Reporting Entity 

In addition, as discussed in Note 2 of the accompanying financial statements, the component unit financial statements 
have been restated due to the removal of the Virginia Horse Center Foundation as a non-major component unit of the 
Commonwealth. Our opinion is not modified with respect to this matter. 

Other Matters 


Required Supplementary Information 

Accounting principles generally accepted in the United States of America require that the management’s discussion and 
analysis, budgetary comparison schedules, schedule of changes in employer’s net pension liability, schedule of employer 
contributions for pension plans, funding progress for other post-employment benefit plans, schedule of employer contributions for 
other post-employment benefit plans, and claims development information on pages 27 through 37 and 177 through 196 be 
presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is 
required by the Governmental Accounting Standards Board who considers it to be an essential part of the financial reporting for 
placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain 
limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the 
United States of America, which consisted of inquiries of management about the methods of preparing the information and 
comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other 
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance 


Commonwealth of Virginia 25 




on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any 
assurance. 


Supplementary and Other Information 

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the 
Commonwealth of Virginia’s basic financial statements. The accompanying supplementary information, such as the combining and 
individual fund statements and schedules, and other information such as the introductory and statistical sections, are presented for 
the purpose of additional analysis and is not a required part of the basic financial statements. 

The combining and individual fund statements and schedules are the responsibility of management and were derived from 
and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information 
has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional 
procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to 
prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in 
accordance with auditing standards generally accepted in the United States of America by us and other auditors. In our opinion, 
based on our audit, the procedures performed as described above, and the report of the other auditors, the combining and 
individual fund statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements 
taken as a whole. 

The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the 
basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. 

Other Reporting Required by Government Auditing Standards 

In accordance with Government Auditing Standards , our report dated December 15, 2015, on our consideration of the 
Commonwealth’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, 
regulations, contracts and grant agreements, and other matters is issued in the Commonwealth of Virginia Single Audit Report . The 
purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the 
results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is 
an integral part of an audit performed in accordance with Government Auditing Standards in considering the Commonwealth’s 
internal control over financial reporting and compliance. 


MARTHA S. MAVREDES 
AUDITOR OF PUBLIC ACCOUNTS 


26 Commonwealth of Virginia 



Management’s Discussion and Analysis 

(Unaudited) 


The following is a discussion and analysis of the Commonwealth of Virginia’s (the Commonwealth) financial performance, including 
an overview and analysis of the financial activities of the Commonwealth for the fiscal year ended June 30, 2015. Readers should 
consider this information in conjunction with the transmittal letter, which is located in the Introductory Section of this report, and the 
Commonwealth’s financial statements, including the notes to the financial statements, which are located after this analysis. 

Financial Highlights 

Government-wide Highlights 

The primary government’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources at 
June 30, 2015, by $20.8 billion. Net position of governmental activities increased by $868.1 million and net position of business- 
type activities increased by $303.0 million. Component units reported an increase in net position of $1.1 billion from June 30, 
2014. 

Fund Highlights 

At the end of the fiscal year, the Commonwealth’s governmental funds reported a combined ending fund balance of $4.3 billion, an 
increase of $402.8 million in comparison with the prior year. Of this total fund balance, $282.5 million represents nonspendable 
fund balance, $2.2 billion represents restricted fund balance, $2.5 billion represents committed fund balance, and $28.8 million 
represents assigned fund balance. These amounts are offset by a negative $713.1 million unassigned fund balance. The 
Enterprise Funds reported net position at June 30, 2015, of $1.4 billion, an increase of $303.9 million during the year which is 
primarily attributable to the Unemployment Compensation Fund and the Virginia College Savings Plan. See page 33 for additional 
information. 

The General Fund recognized higher fund revenues and expenditures, as well as higher assets and deferred outflows of resources 
and lower liabilities and deferred inflows of resources when compared to fiscal year 2014. See page 34 for additional information. 

Long-term Debt 

The Commonwealth’s total debt rose during the fiscal year to $41.9 billion, an increase of $4.3 billion, or 11.4 percent. During the 
fiscal year, the Commonwealth issued new debt in the amount of $1.4 billion for the primary government and $5.0 billion for the 
component units. These debt issuances increased the debt balances to $14.7 billion for the primary government and $27.2 billion 
for component units. 

Overview of the Financial Statements 

This discussion and analysis is an introduction to the Commonwealth’s basic financial statements, which include three 
components: 1) government-wide financial statements; 2) fund financial statements; and 3) notes to the financial statements. The 
report also contains additional required supplementary information and other information. 

Government-wide Statements 

The government-wide financial statements are designed to provide readers with a broad overview of the Commonwealth’s finances 
in a manner similar to a private-sector business. The statements provide both short-term and long-term information about the 
Commonwealth’s financial position which helps readers determine whether the Commonwealth’s financial position has improved or 
deteriorated during the fiscal year. These statements include all non-fiduciary financial activity on the full accrual basis of 
accounting. This means that all revenue and expenditures are reflected in the financial statements even if the related cash has not 
been received or paid as of June 30. 

The Statement of Net Position (pages 40 and 41) presents information on all of the Commonwealth’s assets and deferred outflows 
of resources, and liabilities and deferred inflows of resources; net position represents the difference between all other elements in a 
statement of financial position and is displayed in three components - net investment in capital assets; restricted; and unrestricted. 
Over time, increases or decreases in net position may indicate whether the financial position of the Commonwealth is improving or 
deteriorating. 

The Statement of Activities (pages 42 through 44) presents information showing how the Commonwealth’s net position changed 
during fiscal year 2015. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, 
regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will 
only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). 


Commonwealth of Virginia 27 







Both the Statement of Net Position and Statement of Activities report three separate activities. These activities are described as 
follows: 

Governmental Activities - account for functions of the Commonwealth that are primarily supported by taxes and 
intergovernmental revenues. The majority of the Commonwealth’s basic services, such as education, individual and family 
services, transportation, resources and economic development, administration of justice, and general government, fall within this 
category. 

Business-type Activities - account for functions that are intended to recover all or a significant portion of their costs through user 
fees and charges. The major business-type activities of the Commonwealth include the Virginia Lottery, Virginia College Savings 
Plan, and Unemployment Compensation Fund. 

Discretely Presented Component Units - account for functions of legally separate entities for which the Commonwealth is 
financially accountable. The Commonwealth has 26 non-higher education component units and 22 higher education institutions 
that are reported as discretely presented component units. Information regarding the individual financial statements of the 
component units is presented in the notes to the financial statements. 

This report includes two schedules (pages 48 and 52) that reconcile the amounts reported on the governmental fund financial 
statements (modified accrual accounting) with governmental activities on the appropriate government-wide statements (full accrual 
accounting). The following indicates some of the reporting differences between the government-wide financial statements and the 
fund financial statements. 

• Capital assets used in governmental activities are not reported on governmental fund statements. 

• Long-term liabilities, unless due and payable, are not included in the fund financial statements. These liabilities are only 
included in the government-wide statements. 

• Internal service funds are reported as governmental activities in the government-wide statements, but are reported as 
proprietary funds in the fund financial statements. 

• Other long-term assets that are not available to pay for current period expenditures are deferred in the governmental fund 
statements, but not deferred in the government-wide statements. 

• Capital outlay spending results in capital assets on the government-wide statements, but is reported as expenditures in 
the fund financial statements. 

• Bond proceeds provide current financial resources on the fund financial statements, but are recorded as long-term 
liabilities in the government-wide financial statements. 

Fund Financial Statements 

A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific 
activities or objectives. The Commonwealth, like other state and local governments, uses fund accounting to ensure and 
demonstrate compliance with finance-related legal requirements. All of the Commonwealth’s funds can be divided into three 
categories: governmental, proprietary, and fiduciary. Each of these categories uses different accounting approaches. Fund 
financial statements begin on page 46 and provide detailed information about the major individual funds. 

• Governmental funds - Most of the basic services provided by the Commonwealth are reported in the governmental 
funds. These statements provide a detailed, short-term view of the functions reported as governmental activities in the 
government-wide financial statements. The government-wide financial statements are reported using the full accrual basis 
of accounting, but the governmental fund financial statements are reported using the modified accrual basis of accounting. 
This allows the reader to focus on assets that can be readily converted to cash and determine whether there are adequate 
resources to meet the Commonwealth’s current needs. 

Because the focus of governmental funds is more limited than that of the government-wide financial statements, it is 
useful to compare the information presented for governmental funds with similar information presented for governmental 
activities in the government-wide financial statements. This comparison can help readers better understand the long-term 
impact of the Commonwealth’s near-term financing decisions. Both the governmental fund balance sheet and the 
governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to 
facilitate this comparison between governmental funds and governmental activities. These reconciliations are presented 
on the page immediately following each governmental fund financial statement. 

The Commonwealth reports 12 individual governmental funds. Information is presented separately in the governmental 
fund statements for the General, Commonwealth Transportation, Federal Trust, and Literary funds, which are all 
considered major funds. Data from the other 8 governmental funds are aggregated into a single column on the fund 
statements. Individual fund data for these nonmajor governmental funds is provided in the combining financial statements 
immediately following the required supplementary information. 


28 Commonwealth of Virginia 




• Proprietary funds - The Commonwealth maintains two different types of proprietary funds, enterprise and internal 
service. These funds report activities that operate more like those of private-sector business and use the full accrual 
basis of accounting. Enterprise funds report activities that charge fees for supplies or services to the general public like 
the Virginia Lottery. Enterprise funds are reported as business-type activities on the government-wide financial 
statements. 

The enterprise funds use the full accrual basis of accounting and the only differences between amounts reported on the 
government-wide statements and the enterprise fund statements are due to internal service fund activity (see 
reconciliations on pages 54 and 56). Internal service funds report activities that charge fees for supplies and services to 
other Commonwealth agencies, like Fleet Management. Internal service funds are reported as governmental activities in 
the government-wide statements because these types of services predominantly benefit governments rather than 
business-type functions. 

The Commonwealth reports 24 individual proprietary funds. Information is presented separately in the proprietary fund 
statements for the Virginia Lottery, Virginia College Savings Plan, and Unemployment Compensation Funds, all of which 
are considered major funds. Data from the other enterprise funds are aggregated into a single column on the fund 
statements. All internal service funds are aggregated into a single column on the fund statements. Individual fund data 
for all nonmajor proprietary funds is provided in the combining financial statements immediately following the required 
supplementary information. 

• Fiduciary funds - These funds are used to account for resources held for the benefit of parties outside the government 
and use the full accrual basis of accounting. Fiduciary funds are excluded from the government-wide financial statements 
because the resources of these funds are restricted and cannot be used to finance the Commonwealth’s operations. The 
Commonwealth’s fiduciary activities are reported in separate Statements of Fiduciary Net Position and Changes in 
Fiduciary Net Position beginning on page 64. 

The Commonwealth’s fiduciary funds are the: 

o Private Purpose Trusts, which reports the activities for 7 separate funds and accounts for transactions of trust 
arrangements in which the principal and income benefit individuals, private organizations, or other governments; 
o Pension and Other Employee Benefit Trusts, which reports the activities of 13 separate pension and other 
employment retirement plans for employees; 

o Investment Trust, which accounts for the activities of the external investment pool; and, 
o Agency, which accounts for assets held on behalf of others in 20 separate funds. 

Individual fund data for all fiduciary funds is provided in the combining financial statements immediately following the 
required supplementary information. 

• Component Units - The government-wide financial statements report information for all component units aggregated in a 
single column. Information is provided separately in the component unit fund statements for the Virginia Housing 
Development Authority, Virginia Public School Authority, Virginia Resources Authority, and Virginia College Building 
Authority, all of which are considered major component units. Data from the other component units are aggregated into a 
single column on the fund statements. Individual fund data for all nonmajor component units is provided in the combining 
financial statements immediately following the required supplementary information. 

Notes to the Financial Statements 

The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and 
fund financial statements. The notes to the financial statements can be found immediately following the component unit fund 
financial statements. 

Required Supplementary Information 

The basic financial statements are followed by a section of required supplementary information. This section includes budgetary 
comparison schedules reconciling the statutory and generally accepted accounting principles fund balances at June 30. It also 
includes information concerning the Commonwealth’s funding progress and employer contributions for pension and other 
postemployment benefits and changes in employers’ net pension liability, as well as trend information for Commonwealth-managed 
risk pools. 


Commonwealth of Virginia 29 




Other Information 


The combining statements referred to earlier in connection with nonmajor funds and component units can be found beginning on 
page 197 of this report. The individual fund information is aggregated into a single total on the combining financial statements, 
which carries forward to the fund financial statements. 

Government-wide Financial Analysis 

The primary government’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by 
$20.8 billion during the fiscal year. The net position of the governmental activities increased $868.1 million, or 4.7 percent, 
primarily due to increases in capital assets and deferred outflows of resources offset by increases in total liabilities and deferred 
inflows of resources. Capital assets are discussed further on page 35, the long-term liabilities are discussed further on page 36, 
and deferred inflows and outflows of resources are discussed in Note 13, “Deferred Outflows and Deferred Inflows of Resources.” 
Business-type activities had an increase of $303.0 million, or 28.2 percent, primarily due to an increase for the Unemployment 
Compensation Fund and Virginia College Savings Plan as discussed on page 33. The government-wide beginning balance was 
restated for the implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions—an amendment of 
GASB Statement No. 27, and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the 
Measurement Date—an amendment of GASB Statement No. 68, and the correction of prior year errors to arrive at a restated 
beginning balance of $19.6 billion. 


Figure 11 

Net Position as of June 30, 2015 and 2014 

(Dollars in Thousands) 


Governmental Activities _ _ Business-type Activities _ _ Total 



2014 


2014 


2014 

2015 

as restated 

2015 

as restated 

2015 

as restated 


Current and other assets 

$ 

9,244,081 

$ 

8,966,466 

$ 

4,425,736 

$ 

4,042,573 

$ 

13,669,817 

$ 

13,009,039 

Capital assets 


29,347,883 


27,908,070 


40,227 


168,539 


29,388,110 


28,076,609 

Deferred outflow s of resources 


507,048 


53,940 


13,438 


- 


520,486 


53,940 

Total assets and deferred outflows of resources 


39,099,012 


36,928,476 


4,479,401 


4,211,112 


43,578,413 


41,139,588 

Long-term liabilities outstanding 


11,953,821 


11,996,146 


2,736,277 


2,779,870 


14,690,098 


14,776,016 

Other liabilities 


4,790,020 


4,801,203 


342,291 


354,809 


5,132,311 


5,156,012 

Deferred inflow s of resources 


2,918,314 


1,562,385 


21,371 


- 


2,939,685 


1,562,385 

Total liabilities and deferred inflow s of resources 


19,662,155 


18,359,734 


3,099,939 


3,134,679 


22,762,094 


21,494,413 

Net position: 













Net investment in capital 













assets 


23,406,620 


22,326,288 


34,519 


12,312 


23,441,139 


22,338,600 

Restricted 


1,435,961 


1,465,891 


845,213 


586,073 


2,281,174 


2,051,964 

Unrestricted 


(5,405,724) 


(5,223,437) 


499,730 


478,048 


(4,905,994) 


(4,745,389) 

Total net position 

$ 

19,436,857 

$ 

18,568,742 

$ 

1,379,462 

$ 

1,076,433 

$ 

20,816,319 

$ 

19,645,175 


The largest portion of the primary government’s net position reflects its investment in capital assets (e.g., land, buildings, 
equipment, infrastructure, construction-in-progress, and intangible assets including water rights, easements and software), less any 
related outstanding debt and deferred inflows of resources used to acquire those assets. These assets are recorded net of 
depreciation in the financial statements. The primary government uses these capital assets to provide services to citizens; 
therefore, these assets are not available for future spending. Although the primary government’s investment in its capital assets is 
reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, 
since the capital assets themselves cannot be used to liquidate these liabilities (Figure 11). The governmental activities net 
investment in capital assets amount exceeds total net position due to a negative unrestricted net position amount unrelated to 
capital assets. 

An additional portion of the primary government’s net position represents restricted net position. These resources are subject to 
external restrictions or constitutional provisions specifying how they may be used. The remaining balance of negative $4.9 billion is 
unrestricted net position (Figure 11). 

Approximately 55.4 percent of the primary government’s total revenue came from taxes. While the primary government’s expenses 
cover many services, the largest expenses are for education and individual and family services. General revenues normally fund 
governmental activities. For fiscal year 2015, governmental program and general revenues exceeded governmental expenses by 
$274.3 million. Program revenues exceeded expenses from business-type activities by $986.0 million. The following condensed 
financial information (Figure 12) was derived from the Government-wide Statement of Activities and provides detail regarding the 
change in net position (see page 42). 


30 Commonwealth of Virginia 











Figure 12 

Changes in Net Position for the Fiscal Years Ended June 30, 2015 and 2014 

(Dollars in Thousands) 


Governmental Activities _ _ Business-type Activities _ _ Total 



2014 


2014 


2014 

2015 

as restated 

2015 

as restated 

2015 

as restated 


Revenues: 

Program Revenues: 









Charges for Services 

$ 2,594,514 

$ 2,560,863 

$ 3,953,679 

$ 

4,131,281 

$ 

6,548,193 $ 

6,692,144 

Operating Grants and Contributions 

8,914,631 

8,731,809 

183 


264 


8,914,814 

8,732,073 

Capital Grants and Contributions 

1,618,761 

1,508,880 

- 


69,595 


1,618,761 

1,578,475 

General Revenues: 









Taxes: 









Individual and Fiduciary Income 

12,265,530 

11,681,808 

- 


- 


12,265,530 

11,681,808 

Sales and Use 

4,829,677 

4,597,105 

- 


- 


4,829,677 

4,597,105 

Corporation Income 

801,165 

769,832 

- 


- 


801,165 

769,832 

Motor Fuel 

888,348 

791,944 

- 


- 


888,348 

791,944 

Motor Vehicle Sales and Use 

846,197 

780,817 

- 


- 


846,197 

780,817 

Communications Sales and Use 

416,051 

420,371 

- 


- 


416,051 

420,371 

Deeds, Contracts, Wills, and Suits 

440,896 

394,834 

- 


- 


440,896 

394,834 

Premiums of Insurance Companies 

453,376 

459,933 

- 


- 


453,376 

459,933 

Alcoholic Beverage Sales 

139,832 

132,044 

- 


- 


139,832 

132,044 

Tobacco Products 

178,954 

182,110 

- 


- 


178,954 

182,110 

Estate 

92 

149 

- 


- 


92 

149 

Public Service Corporations 

118,849 

119,074 

- 


- 


118,849 

119,074 

Beer and Beverage Excise 

42,719 

43,050 

- 


- 


42,719 

43,050 

Wine and Spirits/ABC Liter 

26,253 

25,620 

- 


- 


26,253 

25,620 

Bank Stock 

19,030 

22,581 

- 


- 


19,030 

22,581 

Other Taxes 

112,368 

95,415 

9,142 


9,142 


121,510 

104,557 

Unrestricted Grants and Contributions 

48,613 

48,730 

- 


- 


48,613 

48,730 

Investment Earnings 

15,970 

44,571 

1,603 


1,735 


17,573 

46,306 

Miscellaneous 

205,625 

233,716 

243 


358 


205,868 

234,074 

Total Revenues 

34,977,451 

33,645,256 

3,964,850 


4,212,375 


38,942,301 

37,857,631 


Expenses: 


General Government 

3,267,325 

3,545,550 

- 

- 

3,267,325 

3,545,550 

Education 

9,844,625 

9,484,561 

- 

- 

9,844,625 

9,484,561 

Transportation 

4,369,089 

4,060,677 

- 

- 

4,369,089 

4,060,677 

Resources and Economic Development 

970,515 

1,163,797 

- 

- 

970,515 

1,163,797 

Individual and Family Services 

13,276,897 

13,875,427 

- 

- 

13,276,897 

13,875,427 

Administration of Justice 

2,751,111 

3,641,626 

- 

- 

2,751,111 

3,641,626 

Interest and Charges on Long-term Debt 

223,584 

237,782 

- 

- 

223,584 

237,782 

Virginia Lottery 

- 

- 

1,299,753 

1,281,732 

1,299,753 

1,281,732 

Virginia College Savings Ran 

- 

- 

155,331 

110,156 

155,331 

110,156 

Unemployment Compensation 

- 

- 

431,437 

535,715 

431,437 

535,715 

Alcoholic Beverage Control 

- 

- 

579,945 

595,272 

579,945 

595,272 

Risk Management 

- 

- 

10,240 

13,839 

10,240 

13,839 

Local Choice Health Care 

- 

- 

349,910 

308,295 

349,910 

308,295 

Route 460 Funding Corporation of Virginia 

- 

- 

13,024 

82,257 

13,024 

82,257 

Virginia Industries for the Blind 

- 

- 

42,722 

39,198 

42,722 

39,198 

Consolidated Laboratory 

- 

- 

8,630 

11,244 

8,630 

11,244 

eVA Procurement System 

- 

- 

22,563 

23,739 

22,563 

23,739 

Department of Environmental Quality Title V 

- 

- 

10,444 

16,287 

10,444 

16,287 

Wireless E-911 

- 

- 

36,804 

46,598 

36,804 

46,598 

Museum and Library Gift Shops 

- 

- 

6,618 

7,174 

6,618 

7,174 

Behavioral Health Canteen and Work Activity 

- 

- 

466 

442 

466 

442 

Total Expenses 

34,703,146 

36,009,420 

2,967,887 

3,071,948 

37,671,033 

39,081,368 

Excess before transfers 

274,305 

(2,364,164) 

996,963 

1,140,427 

1,271,268 

(1,223,737) 

Special Item 

(134,561) 

- 

34,437 

- 

(100,124) 

- 

Transfers 

728,371 

723,701 

(728,371) 

(723,701) 

- 

- 

Increase in net position 

868,115 

(1,640,463) 

303,029 

416,726 

1,171,144 

(1,223,737) 

Net position, July 1, as restated 

18,568,742 

20,209,205 

1,076,433 

659,707 

19,645,175 

20,868,912 

Net position, June 30 

$ 19,436,857 ! 

$ 18,568,742 

$ 1,379,462 $ 

1,076,433 $ 

20,816,319 $ 

19,645,175 


Commonwealth of Virginia 31 













Governmental Activities Revenues 


Figure 13 is a graphical representation of the Statement of Activities revenues for governmental activities. Governmental activities 
revenues increased by $1.3 billion, or 4.0 percent. The net increase is mainly attributable to increases in the General Fund, which 
are discussed on page 34. 


Figure 13 

Revenues by Source - Governmental Activities 

Fiscal Year 2015 


Sales and Use Tax 
14 %. 


Corporation In come Tax 
2 % 


Individualand Fiduciary. 
IncomeTax 
35% 


Capital Grants and. 
Contributions 
5% 


.MotorFuel Tax 
3% 


lotorVehideSales and 
Use Tax 
2% 


Communications 
Sales and Use 
1 % 



remiums oflnsurance 
CompaniesTax 
1% 


^Operating Grants and 
Contrbutions 
25% 


Governmental Activities Expenses 

Figure 14 is a graphical representation of the Statement of Activities expenses for governmental activities. Governmental activities 
expenses decreased by $1.3 billion, or 3.6 percent. This change is primarily attributable to decreases in all expense types with the 
exception of Education and Transportation. See pages 34 and 35 for additional information. 


Figure 14 

Expenses by Type - Governmental Activities 

Fiscal Year 2015 



32 Commonwealth of Virginia 










Net Position of Business-type Activities 

Net position of business-type activities increased by $303.0 million during the fiscal year. As shown in Figure 15, highlights of the 
changes in net position for the major enterprise funds were as follows: 

• Lottery sales were $1.8 billion, an increase of $33.1 million over the prior year. Net income was $545.5 million, a 
decrease of $621,623 (0.1 percent) from fiscal year 2014. Sales of scratch games increased by $29.9 million (3.0 
percent) and online sales increased by $3.2 million (0.4 percent). This is offset by an increase of $33.4 million (2.6 
percent) in total expenses, primarily attributable to the cost of prizes and claims. 

• Virginia College Savings Plan’s net position increased by $32.2 million (6.3 percent) during the fiscal year. Although the 
investment income decreased from the prior year, total revenues still exceeded the increased expenses incurred during 
fiscal year 2015. 

• Unemployment Compensation Fund net position increased by $259.1 million during fiscal year 2015, primarily as a result 
of a decrease in benefit claims. Operating expenses decreased by $104.3 million. These factors combined give the Trust 
Fund the large increase. 

Over the one year period from July 1, 2014, to June 30, 2015, the unemployment rate declined from 5.2 percent to 4.9 
percent. Additionally, there were approximately 51,270 fewer initial unemployment claims filed than in the previous year. 
These declines were accompanied by decreases in the average weekly benefit amounts from approximately $290.9 to 
$290.0 in fiscal year 2015 and decreases in the average benefit duration from 16.3 weeks to 16.0 weeks in fiscal year 
2015. These multiple influences led to a decrease in the total benefit payments of $104.3 million over the prior year. 


Figure 15 

Business-type Activities 
Program Revenues and Expenses 

Fiscal Year 2015 
(Dollars in Thousands) 


□ Expenses □ Prog ram Revenues 

$2,000,000 
$1,800,000 
$1,600,000 
$1,400,000 
$1,200,000 
$1,000,000 
$800,000 
$600,000 
$400,000 
$200,000 
$0 



Commonwealth of Virginia 33 





Fund Statements Financial Analysis 


As of the end of the fiscal year, the primary government’s governmental funds reported combined ending fund balances of $4.3 
billion, including a negative unassigned fund balance of $713.1 million indicating that restricted and committed amounts exceed the 
available modified accrual basis fund balance. The remainder of fund balance is nonspendable, restricted or committed to indicate 
that it is not available for new spending. 

General Fund Highlights 

At the end of the fiscal year, the General Fund reported a combined ending fund balance of $848.4 million, an increase of $218.7 
million in comparison with the prior year. Of this total fund balance, $120.0 million represents nonspendable fund balance, $1.1 
billion represents restricted fund balance, and $295.7 million represents committed fund balance. These amounts are offset by a 
negative $653.4 million unassigned fund balance. 

Fiscal year 2015 General Fund revenues were 3.5 percent, or $642.6 million, higher than fiscal year 2014 revenues. This revenue 
change results from increases of $762.2 million primarily attributable to individual and fiduciary income taxes ($590.0 million), sales 
and use taxes ($94.4 million), deeds, contracts, wills and suits taxes ($35.4 million) and corporation income taxes ($22.4 million) 
offset by decreases of $119.6 million primarily attributable to interest, dividends, and rents ($50.3 million), other revenue primarily 
relating to expenditure recoveries from prior years ($34.9 million), and premiums of insurance companies taxes ($14.0 million). 

Fiscal year 2015 expenditures increased by 2.6 percent, or $483.4 million, when compared to fiscal year 2014. This was primarily 
attributable to increases in individual and family services, education, general government, and administration of justice 
expenditures of $262.4 million, $161.6 million, $30.2 million, and $24.6 million, respectively. Net other financing sources and uses 
increased by $67.8 million, which is primarily due to lower transfers out to and higher transfers in from nongeneral funds. 

Budget Highlights 

The General Fund began the year with an original revenue budget that was $943.0 million, or 5.2 percent, higher than the final 
fiscal year 2014 revenue budget. Additionally, the final revenue budget was slightly lower ($624.4 million or 3.3 percent) than the 
original budget. The change between the original and final budget was primarily attributable to decreases in the final budget for 
individual and fiduciary income taxes of $533.6 million and other revenue primarily relating to expenditure recoveries from prior 
years of $80.4 million due to revised economic forecasts. This was offset by increases in the final budget for premiums of 
insurance companies taxes of $29.6 million and corporation income taxes of $24.3 million. Total actual General Fund revenues 
were higher than final budgeted revenues by $531.1 million due to stronger than anticipated collections. 

Total final budget expenditures were lower than original budget expenditures by $560.8 million, or 2.8 percent. This decrease was 
primarily attributable to budgeted expenditures for general government of $561.4 million, individual and family services of $96.0 
million, and education of $22.4 million, offset in part by increases in resources and economic development of $56.8 million and 
administration of justice of $52.7 million. 

The Commonwealth spent less than planned so actual expenditures were $272.3 million, or 1.4 percent, lower than final budget 
expenditures. 

Budget Outlook 

In order to mitigate the effects of difficult economic conditions over the past several years, the Commonwealth adopted temporary 
budget solutions such as accelerated sales taxes. 

While some of the conditions left by the financial and economic downturn experienced between 2008 and 2010 are still visible in 
certain sectors, Virginia’s economy continued to recover, however, at a slower rate than the national level. Data regarding the 
primary economic indicators - jobs and new housing units provide some improvement. The unemployment rate has decreased 
from the previous fiscal year while housing indicators show mixed results. During fiscal year 2015 the two General Fund revenue 
sources most closely tied to current economic activity - individual income taxes and retail sales taxes - experienced increases 
when compared to the 2014 collections by $1.1 billion (9.6 percent) and $169.0 million (5.5 percent), respectively. The individual 
income tax collections and retail sales taxes were more than the estimated revenue by $512.4 million (4.3 percent) and $17.6 
million (0.5 percent), respectively. These increases resulted in a strong performance during the second half of the fiscal year. 

Although the fiscal year 2015 revenue collections compared to fiscal year 2014 showed improvements over the estimate, the fiscal 
year 2016 General Fund Revenue estimate calls for a decline of 0.1 percent when compared to the fiscal year 2015 collections. 
This planned reduction reflects continued uncertainty related to federal spending cuts and concerns in the global market. The 
Governor will release his amendments to the 2016-2017 biennial budget on December 17, 2015. 


34 Commonwealth of Virginia 




Major Special Revenue Fund Highlights 

The Commonwealth Transportation Fund ended the fiscal year with a fund balance of $2.3 billion. Approximately $3.9 billion is 
contractually committed for various highways, public transportation, and rail preservation projects (see Note 20). Additionally, 
revenues and expenditures increased $434.1 million, or 8.7 percent, and $284.1 million, or 5.5 percent, respectively. The revenue 
increase was primarily due to increases in tax collection of $332.4 million or 11.2 percent and in other revenue of $68.5 million or 
49.7 percent. Expenditures increased mainly for highway maintenance, acquisition, and construction. 

The Federal Trust Fund balance decreased by $19.8 million, or 14.7 percent primarily due to a significant decrease in fines and 
forfeitures of $89.4 million, or 93.7 percent, and a decrease in other revenue of $32.1 million or 22.4 percent, offset by an increase 
in Federal Grants and Contracts revenue of approximately $25.3 million and a decrease in expenditures of $60.1 million. This 
change in the Federal Grants and Contracts revenue was mainly attributed to an increase in Medicaid funding ($156.8 million), 
child and family assistance ($61.8 million), and public safety ($12.7 million), offset by decreases of American Recovery and 
Reinvestment Act revenue ($21.6 million), unemployment insurance ($78.8 million), food and home energy assistance programs 
($97.4 million), and education grants ($28.5 million). The remaining difference is distributed over many other federal programs. Net 
other financing sources and uses decreased by $10.9 million, or 89.4 percent primarily attributable to lower transfers in from other 
funds. 

The Literary Fund ended the year with a deficit net position of $37.5 million and a fund balance decrease of $51.0 million, or 378.2 
percent. These decreases resulted from both operating results and accruals. The net disbursements exceeded net receipts by 
$63.4 million, offset by a cash transfer in of $12.4 million representing unclaimed prizes from the Virginia Lottery (major enterprise). 
Additionally, loans of $185.9 million owed to the Virginia Public School Authority (major component unit) exceeded the cash and 
accrued receivables at year end. 

Capital Asset and Long-term Debt 

Capital Assets. The primary government’s investment in capital assets for its governmental and business-type activities as of 
June 30, 2015, amounts to $29.4 billion (net of accumulated depreciation totaling $16.4 billion). This investment in capital assets 
includes land, buildings, improvements, equipment, infrastructure, construction-in-progress, and intangible assets including water 
rights, easements, and software. Infrastructure assets are items that are normally immovable such as roads, bridges, drainage 
systems, and other similar assets. As noted on page 30, increases in capital assets and deferred outflows of resources offset by 
increases in total liabilities and deferred inflows of resources resulted in an increase in net position of the governmental activities of 
$868.1 million, or 4.7 percent. The increase in the primary government’s net investment in capital assets was primarily attributable 
to increases in infrastructure of $1.2 billion offset by decreases in construction-in-progress of $90.5 million. These changes are 
primarily attributable to transportation. The primary government reports equipment with a value of $50,000 or greater and an 
expected useful life of two or more years. The primary government capitalizes all land, buildings, infrastructure, and intangible 
assets that have a cost or value greater than $100,000 and an expected useful life of two or more years. Additional information on 
the primary government’s capital assets can be found in Note 12, Capital Assets. 


Figure 16 

Capital Assets as of June 30, 2015 
(Net of Depreciation) 

(Dollars in Thousands) 

Governmental Business-type 




Activities 


Activities 


Total 

Land 

$ 

2,935,504 

$ 

1,977 

$ 

2,937,481 

Buildings 


2,619,679 


17,638 


2,637,317 

Equipment 


485,154 


12,149 


497,303 

Water Rights/Easements 


69,770 


- 


69,770 

Infrastructure 


18,974,616 


- 


18,974,616 

Softw are 


244,070 


3,861 


247,931 

Construction-in-FVogress 


4,019,090 


4,602 


4,023,692 

Total 

$ 

29,347,883 

$ 

40,227 

$ 

29,388,110 


Commonwealth of Virginia 35 




Long-term Debt. The Commonwealth is prohibited from issuing general obligation bonds for operating purposes. At the end of 
the current fiscal year, the Commonwealth had total debt outstanding of $41.9 billion, including total tax-supported debt of $19.8 
billion and total debt not supported by taxes of $22.2 billion. Bonds backed by the full faith and credit of the government and tax- 
supported total $1.6 billion. Debt is considered tax-supported if Commonwealth tax revenues are used or pledged for debt service 
payments. An additional $877.9 million is considered moral obligation debt which is not tax-supported. The Commonwealth has 
no direct or indirect pledge of tax revenues to fund reserve deficiencies. However, in some cases, the Commonwealth has made a 
moral obligation pledge to consider funding deficiencies in debt service reserves that may occur. The remainder of the 
Commonwealth’s debt represents bonds secured solely by specified revenue sources (i.e., revenue bonds). 

During fiscal year 2015, the Commonwealth issued $6.4 billion of new debt for various projects. Of this new debt, $1.4 billion was 
for the primary government and $5.0 billion for the component units. Additional information on the Commonwealth’s outstanding 
debt can be found in Note 26, “Long-Term Liabilities,” as well as in the section entitled “Debt Schedules.” The Commonwealth 
maintains a “triple A” bond rating for general obligation debt from the three rating agencies: Moody’s Investors Service; Standard & 
Poor’s Ratings Group, a division of The McGraw Hill Companies, Inc.; and Fitch, Inc. 

State statutes limit the amount of general obligation debt the Commonwealth may issue for each specific type of debt. The 9(a) 
bonds, which may be issued to fund the defense of the Commonwealth; to meet casual deficits in revenue or in anticipation of the 
collection of revenues; or to redeem previous debt obligations, and are limited to 30.0 percent of 1.15 times the annual tax 
revenues for fiscal year 2015. The 9(b) bonds, which have been authorized by the citizens of Virginia through bond referenda to 
finance capital projects, are limited to 1.15 times the average of selected tax revenues for fiscal years 2013, 2014, and 2015. The 
9(c) bonds, which have been issued to finance capital projects that will generate revenue upon their completion, are limited to 1.15 
times the average of selected tax revenues for fiscal years 2013, 2014, and 2015. The current debt limitation for the 
Commonwealth is $5.8 billion, $17.6 billion, and $17.3 billion, respectively, for the 9(a), 9(b), and 9(c) general obligation bond 
issues. These limits significantly exceed the Commonwealth’s outstanding general obligation debt. Currently, there is no 9(a) debt 
outstanding. 


Figure 17 

Outstanding Debt as of June 30, 2015 
General Obligation Bonds 

(Dollars in Thousands) 


Primary Government 



Governmental 

Activities 

Business-type 

Activities 


Total 

Component 

Units 

General obligation bonds 







9(b) 

$ 

642,181 

$ 

$ 

642,181 

$ 

9(c) 


33,190 

- 


33,190 

936,857 

Total 

_$_ 

675,371 

$ 

$ 

675,371 

$ 936,857 


36 Commonwealth of Virginia 




New Accounting Standard 


The Commonwealth implemented GASB Statement No. 68, Accounting and Financial Reporting for Pensions—an amendment of 
GASB Statement No. 27, and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the 
Measurement Date—an amendment of GASB Statement No. 68, during fiscal year 2015. The new GASB reporting requirements 
impact the measurement and recognition of pension-related liabilities, deferred outflows of resources, deferred inflows of resources 
and pension-related expenses in the Commonwealth’s financial statements. As a result of these statements, the beginning net 
position has been restated for the primary government and component units by $2.5 billion and $1.7 billion, respectively, as further 
discussed in Note 2, “Restatement of Beginning Balances.” The following amounts are reported for Net Pension Liability, Deferred 
Outflows of Resources and Deferred Inflows of Resources in the Commonwealth’s financial statements. 


Primary Government 


Component Units 


Net Pension Liability $ 4.3 billion 

Deferred Outflows of Resources 438.8 million 

Deferred Inflows of Resources 768.7 million 


2.5 billion 
252.5 million 
473.1 million 


While the above amounts are reported for the first time in fiscal year 2015, it is important to note that the Net Pension Obligation 
was previously reported in both the financial statements and notes to the financial statements. Further, the Unfunded Actuarially 
Accrued Liability amounts were previously reported in the notes to the financial statements and Required Supplementary 
Information. Additional information can be found in Note 13, Deferred Inflows and Deferred Outflows of Resources, and Note 15, 
Retirement and Pension Systems. 

Economic Factors and Review 

During fiscal year 2015, the Commonwealth’s economy saw continued improvement, although at a slower rate than at the national 
level. The Commonwealth experienced a lower job growth rate than at the national level (0.8 percent at the state level versus 2.2 
percent nationally), widening the gap between the Commonwealth’s job growth rate and that of the nation during the last fiscal 
year. Personal income growth reached 3.9 percent during fiscal year 2015, compared to 1.3 percent in fiscal year 2014. This is 
the highest rate in the last three fiscal years. Unemployment in the Commonwealth and at the national level continued to decline 
during the fiscal year, reaching 4.9 percent and 5.7 percent, respectively. Total taxable sales in the Commonwealth experienced a 
considerable increase of 3.9 percent over fiscal year 2014. Economic indicators show that during fiscal year 2015, the housing 
market in the Commonwealth continued to decline while the national level experienced a slight increase. Additionally, housing 
prices in the Commonwealth again showed a positive change for fiscal year 2015, with an increase of approximately 2.5 percent, 
compared to just over 5.0 percent at the national level. Fiscal year 2015 indicates that the Commonwealth’s economy will continue 
to improve; however, because of its dependence on federal government spending measures, the Commonwealth’s economy may 
experience some economic unpredictability in the coming fiscal year. 

Requests for Information 

This financial report is designed to provide a general overview of the Commonwealth’s finances for all those with an interest in the 
government’s finances. Questions concerning any of the information provided in this report or requests for additional financial 
information should be addressed to the State Comptroller’s Office, Commonwealth of Virginia, P. O. Box 1971, Richmond, Virginia 
23218. This report is also available for download at www.doa.virqinia.gov . 

The Commonwealth’s component units issue their own separate financial statements. Contact information regarding each 
component unit is provided in Note I.B. 


Commonwealth of Virginia 37 





38 Commonwealth of Virginia 







Commonwealth of Virginia 39 






Statement of Net Position 


June 30, 2015 
(Dollars in Thousands) 


Primary Government 



Governmental 

Business-type 


Component 


Activities 

Activities 

Total 

Units 

Assets and Deferred Outflows of Resources 





Cash and Cash Equivalents (Notes 1 and 6) 

$ 3,171,586 

$ 1,106,520 $ 

4,278,106 

$ 2,588,542 

Investments (Notes 1 and 6) 

1,854,522 

2,499,354 

4,353,876 

13,709,567 

Receivables, Net (Notes 1 and 7) 

3,071,450 

525,378 

3,596,828 

12,555,512 

Contributions Receivable, Net (Notes 1 and 8) 

- 

- 

- 

380,944 

Internal Balances (Note 1) 

(62,763) 

62,763 

- 

- 

Due from Primary Government (Note 9) 

- 

- 

- 

12,297 

Due from Component Units (Note 9) 

21,055 

- 

21,055 

143,170 

Due from External Parties (Fiduciary Funds) (Note 9) 

273 

- 

273 

- 

Inventory (Note 1) 

157,835 

68,089 

225,924 

129,934 

Prepaid Items (Note 1) 

114,152 

2,119 

116,271 

139,024 

Other Assets (Notes 1 and 10) 

4,763 

279 

5,042 

101,883 

Loans Receivable from Primary Government (Notes 1 and 9) 

- 

- 

- 

185,850 

Loans Receivable from Component Units (Notes 1 and 9) 

18,992 

- 

18,992 

- 

Restricted Cash and Cash Equivalents (Notes 6 and 11) 

892,216 

135,458 

1,027,674 

2,158,109 

Restricted Investments (Notes 6 and 11) 

- 

25,776 

25,776 

5,236,533 

Other Restricted Assets (Note 11) 

- 

- 

- 

277,678 

Nondepreciable Capital Assets (Notes 1 and 12) 

7,347,105 

6,579 

7,353,684 

2,696,127 

Depreciable Capital Assets, Net (Notes 1 and 12) 

22,000,778 

33,648 

22,034,426 

14,371,900 

Total Assets 

38,591,964 

4,465,963 

43,057,927 

54,687,070 


Deferred Outflows of Resources (Notes 1, 13, and 14) 

507,048 

13,438 

520,486 

702,655 

Total Assets and Deferred Outflows of Resources 

39,099,012 

4,479,401 

43,578,413 

55,389,725 


Liabilities and Deferred Inflows of Resources 


Accounts Payable (Notes 1 and 24) 

980,098 

56,911 

1,037,009 

1,188,754 

Amounts Due to Other Governments 

852,758 

7,439 

860,197 

114,891 

Due to Primary Government (Note 9) 

- 

- 

- 

21,055 

Due to Component Units (Note 9) 

12,297 

- 

12,297 

143,170 

Due to External Parties (Fiduciary Funds) (Note 9) 

24,991 

776 

25,767 

29,352 

Unearned Revenue (Note 1) 

215,578 

3,897 

219,475 

337,618 

Obligations Under Securities Lending Program (Notes 1 and 6) 

200,705 

103,163 

303,868 

20,744 

Other Liabilities (Notes 1, 14, and 25) 

1,548,317 

108,994 

1,657,311 

1,568,180 

Loans Payable to Primary Government (Notes 1 and 9) 

- 

- 

- 

18,992 

Loans Payable to Component Units (Notes 1 and 9) 

185,850 

- 

185,850 

- 

Claims Payable (Notes 1 and 23): 

Due Within One Year 

201,236 

39,268 

240,504 

100,864 

Due in More Than One Year 

568,190 

21,843 

590,033 

41,529 

Long-term Liabilities (Notes 1,21,22, and 26): 

Due Within One Year 

614,979 

583,199 

1,198,178 

1,489,788 

Due in More Than One Year 

11,338,842 

2,153,078 

13,491,920 

25,758,665 

Total Liabilities 

16,743,841 

3,078,568 

19,822,409 

30,833,602 


Deferred Inflows of Resources (Notes 1, 13, 14, and 37) 

2,918,314 

21,371 

2,939,685 

580,780 

Total Liabilities and Deferred Inflow s of Resources 

19,662,155 

3,099,939 

22,762,094 

31,414,382 


The accompanying notes are an integral part of this financial statement. 


40 Commonwealth of Virginia 









































































Primary Government 



Governmental 

Business-type 


Component 


Activities 

Activities 

Total 

Units 

Net Position 





Net Investment in Capital Assets 

23,406,620 

34,519 

23,441,139 

10,103,074 

Restricted For: 

Nonexpendable: 

Higher Education 

- 

- 

- 

3,196,208 

Permanent Funds 

34,725 

- 

34,725 

- 

Other 

- 

- 

- 

159,825 

Expendable: 

Agriculture and Forestry 

1,573 

- 

1,573 

- 

Bond Indenture 

- 

- 

- 

2,682,279 

Capital Projects/Construction/Capital Acquisition 

6,059 

- 

6,059 

1,696,896 

Debt Service 

44,729 

- 

44,729 

101,253 

Economic and Technological Development 

2,286 

- 

2,286 

- 

Educational and Training Programs 

10,522 

- 

10,522 

- 

Environmental Quality and Natural Resource Preservation 

16,705 

- 

16,705 

- 

Gifts and Grants 

136,170 

- 

136,170 

141,371 

Health and Public Safety 

78,711 

- 

78,711 

- 

Higher Education 

- 

- 

- 

5,714,574 

Lottery Proceeds Fund 

7,063 

- 

7,063 

- 

Permanent Funds 

1,447 

- 

1,447 

- 

Revenue Stabilization Fund 

1,073,289 

- 

1,073,289 

- 

Transportation Activities 

13,737 

- 

13,737 

- 

Unemployment Compensation Trust Fund 

- 

845,213 

845,213 

- 

Virginia Pooled Investment Program 

- 

- 

- 

7,747 

Virginia Water Supply Assistance Grant Fund 

5,634 

- 

5,634 

- 

Other 

3,311 

- 

3,311 

10,546 

Unrestricted 

(5,405,724) 

499,730 

(4,905,994) 

161,570 

Total Net Position 

$ 19,436,857 

$ 1,379,462 $ 

20,816,319 

$ 23,975,343 


Commonwealth of Virginia 41 














































Statement of Activities 


For the Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 


_ Program Revenues _ 

Operating Capital 

Charges for Grants and Grants and 

Expenses Services Contributions Contributions 


Functions/Programs 
Primary Government 

Governmental Activities 


General Government 

$ 3,267,325 

$ 

297,095 

$ 

146,717 

$ 

8,067 

Education 

9,844,625 


545,097 


976,277 


10,069 

Transportation 

4,369,089 


691,049 


59,701 


1,585,958 

Resources and Economic Development 

970,515 


378,875 


157,730 


4,260 

Individual and Family Services 

13,276,897 


365,850 


7,543,369 


6,060 

Administration of Justice 

2,751,111 


316,548 


30,837 


4,347 

Interest and Charges on Long-term Debt 

223,584 


- 


- 


- 

Total Governmental Activities 

34,703,146 


2,594,514 


8,914,631 


1,618,761 


Business-type Activities 

Virginia Lottery 

1,299,753 


1,843,971 


- 



Virginia College Savings Ran 

155,331 


187,873 


- 


- 

Unemployment Compensation 

431,437 


692,602 


- 



Alcoholic Beverage Control 

579,945 


730,043 


183 


- 

Risk Management 

10,240 


8,487 


- 



Local Choice Health Care 

349,910 


343,478 


- 


- 

Route 460 Funding Corporation of Virginia 

13,024 


- 


- 



Virginia Industries for the Blind 

42,722 


44,276 


- 


- 

Consolidated Laboratory 

8,630 


10,107 


- 



eVA Procurement System 

22,563 


19,445 


- 


- 

Department of Environmental Quality Title V 

10,444 


10,814 


- 



Wireless E-911 

36,804 


54,604 


- 


- 

Museum and Library Gift Shops 

6,618 


7,493 


- 



Behavioral Health Canteen and Work Activity 

466 


486 


- 


- 

Total Business-type Activities 

2,967,887 


3,953,679 


183 


- 


Total Primary Government 

$ 37,671,033 

$ 

6,548,193 

$ 

8,914,814 

$ 

1,618,761 


Component Units 

Virginia Housing Development Authority 

$ 423,294 

$ 

447,436 

$ 

124,973 

$ 

- 

Virginia Public School Authority 

141,711 


135,924 


8,161 



Virginia Resources Authority 

158,410 


148,908 


- 


54,357 

Virginia College Building Authority 

767,765 


74,298 


42,255 


140 

Non major 

13,924,995 


9,541,330 


2,483,700 


603,781 

Total Component Units 

$ 15,416,175 

$ 

10,347,896 

$ 

2,659,089 

$ 

658,278 


The accompanying notes are an integral part of this financial statement. 


42 Commonwealth of Virginia 




































































Net (Expense) Revenue and Changes in Net Position 
Primary Government 


Governmental Business-type Component 

Activities Activities Total Units 



$ (2,815,446) $ 

$ (2,815,446) $ 


(8,313,182) 

(8,313,182) 

- 

(2,032,381) 

(2,032,381) 


(429,650) 

(429,650) 

- 

(5,361,618) 

(5,361,618) 


(2,399,379) 

(2,399,379) 

- 

(223,584) 

(223,584) 

- 

(21,575,240) 

(21,575,240) 

- 


- 

544,218 

544,218 


- 

32,542 

32,542 

- 


261,165 

261,165 


- 

150,281 

150,281 

- 


(1,753) 

(1,753) 


- 

(6,432) 

(6,432) 

- 


(13,024) 

(13,024) 


- 

1,554 

1,554 

- 


1,477 

1,477 


- 

(3,118) 

(3,118) 

- 


370 

370 


- 

17,800 

17,800 

- 


875 

875 


- 

20 

20 

- 

- 

985,975 

985,975 

- 


(21,575,240) _ 985,975 _ (20,589,265) 


- 

- 

- 

149,115 


- 

- 

2,374 

- 

- 

- 

44,855 


- 

- 

(651,072) 

- 

- 

- 

(1,296,184) 

- 

- 

- 

(1,750,912) 


Continued on next page 


Commonwealth of Virginia 43 





















































Statement of Activities (Continued from previous page) 


For the Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 


Net (Expense) Revenue and Changes in Net Position 


Primary Government 

Governmental Business-type 

Activities Activities 

Total 

Component 

Units 


General Revenues 

Taxes 

Individual and Fiduciary Income 


12,265,530 

- 

12,265,530 

- 

Sales and Use 


4,829,677 

- 

4,829,677 

- 

Corporation Income 


801,165 

- 

801,165 

- 

Motor Fuel 


888,348 

- 

888,348 

- 

Motor Vehicle Sales and Use 


846,197 

- 

846,197 

- 

Communications Sales and Use 


416,051 

- 

416,051 

- 

Deeds, Contracts, Wills, and Suits 


440,896 

- 

440,896 

- 

Ftemiums of Insurance Companies 


453,376 

- 

453,376 

- 

Alcoholic Beverage Sales 


139,832 

- 

139,832 

- 

Tobacco Ftoducts 


178,954 

- 

178,954 

- 

Estate 


92 

- 

92 

- 

Public Service Corporations 


118,849 

- 

118,849 

- 

Beer and Beverage Excise 


42,719 

- 

42,719 

- 

Wine and Spirits/ABC Liter 


26,253 

- 

26,253 

- 

Bank Stock 


19,030 

- 

19,030 

- 

Other Taxes 


112,368 

9,142 

121,510 

- 

Operating Appropriations from Primary Government 


- 

- 

- 

2,101,484 

Unrestricted Grants and Contributions 


48,613 

- 

48,613 

93,289 

Investment Earnings 


15,970 

1,603 

17,573 

374,962 

Miscellaneous 


205,625 

243 

205,868 

104,383 

Special Item (Note 31) 


(134,561) 

34,437 

(100,124) 

- 

Transfers 


728,371 

(728,371) 

- 

- 

Contributions to Permanent and Term Endow ments 


- 

- 

- 

154,108 

Total General Revenues, Special Item, Transfers, and Contributions 


22,443,355 

(682,946) 

21,760,409 

2,828,226 

Change in Net Position 


868,115 

303,029 

1,171,144 

1,077,314 

Net Position, July 1, as restated (Note 2) 


18,568,742 

1,076,433 

19,645,175 

22,898,029 

Net Position, June 30 

$ 

19,436,857 $ 

1,379,462 $ 

20,816,319 $ 

23,975,343 


The accompanying notes are an integral part of this financial statement. 


44 Commonwealth of Virginia 










































Governmental Funds 


General Fund 

The General Fund accounts for transactions related to resources received and used for those services traditionally provided by a 
state government, which are not accounted for in any other fund. 


Special Revenue Funds 

Special Revenue Funds account for specific revenue sources that are restricted or committed to finance particular functions and 
activities of the Commonwealth. 


The Commonwealth Transportation Fund accounts for the 
revenues and expenditures associated with highway 
operations, maintenance, construction, and other 
transportation related activities. Funding for these programs 
is provided from highway user taxes, fees, and funds 
received from the federal government. 

The Federal Trust Fund accounts for all federal dollars 
received by the Commonwealth except those received by 
the Commonwealth Transportation Fund, the Unemployment 
Compensation Fund, certain Medicaid reimbursements 
recorded in the General Fund, and institutions of higher 
education. The entire fund is restricted pursuant to federal 
regulations. 


The Literary Fund accounts for revenues from fines, 
forfeitures, and proceeds from unclaimed property used 
primarily to support public education in the Commonwealth. 
This fund provides low interest loans to school divisions for 
construction, renovations, and expansion of school buildings. 
While the entire fund is constitutionally restricted for public 
schools, the accrued liabilities exceed the accrued assets on 
the modified accrual basis at June 30. 


Nonmajor Governmental Funds include those Special Revenue, Debt Service, Capital Projects, and Permanent Funds listed on 
page 199 in the Combining and Individual Fund Statements and Schedules section of this report. 


Commonwealth of Virginia 45 









Balance Sheet - Governmental Funds 


June 30, 2015 
(Dollars in Thousands) 


Assets and Deferred Outflows of Resources 


General 

Commonwealth 

Transportation 

Special Revenue 

Federal 

Trust 


Literary 









Cash and Cash Equivalents (Notes 1 and 6) 

$ 

117,029 

$ 

1,838,023 

$ 

159,085 

$ 

9,241 

Investments (Notes 1 and 6) 


1,797,355 


2,219 


107 


31 

Receivables, Net (Notes 1 and 7) 


1,705,714 


398,308 


727,723 


159,122 

Due from Other Funds (Note 9) 


18,874 


- 


2,778 


- 

Due from Component Units (Note 9) 


1,118 


- 


- 


- 

Due from External Parties (Fiduciary Funds) (Note 9) 


- 


- 


- 


- 

Interfund Receivable (Note 9) 


- 


- 


- 


- 

Inventory (Note 1) 


41,838 


76,563 


15,791 


- 

Prepaid Items (Note 1) 


78,209 


8,983 


1,420 


- 

Other Assets (Notes 1 and 10) 


970 


414 


1,625 


- 

Loans Receivable from Component Units (Notes 1 and 9) 


- 


- 


- 


- 

Restricted Cash and Cash Equivalents (Notes 6 and 11) 


- 


544,816 


- 


- 

Total Assets 


3,761,107 


2,869,326 


908,529 


168,394 


Deferred Outflows of Resources (Notes 1 and 13) 


- 


- 


- 


- 

Total Assets and Deferred Outflows of Resources 

$ 

3,761,107 

$ 

2,869,326 

$ 

908,529 

$ 

168,394 


Liabilities, Deferred Inflows of Resources, and Fund Balances 

Accounts Payable (Notes 1 and 24) 

$ 

280,264 

$ 

328,993 

$ 

123,686 

$ 

21 

Amounts Due to Other Governments 


427,398 


45,357 


226,667 


- 

Due to Other Funds (Note 9) 


29,929 


14,598 


9,069 


- 

Due to Component Units (Note 9) 


75 


- 


4,089 


- 

Due to External Parties (Fiduciary Funds) (Note 9) 


15,909 


4,106 


2,102 


- 

Interfund Payable (Note 9) 


- 


- 


7,094 


- 

Unearned Revenue (Note 1) 


- 


66,885 


26,536 


107 

Unearned Taxes (Note 1) 


73,199 


- 


- 


- 

Obligations Under Securities Lending Program (Notes 1 and 6) 


120,538 


63,540 


3,056 


883 

Other Liabilities (Notes 1 and 25) 


1,051,130 


1,175 


336,886 


- 

Loans Payable to Component Units (Notes 1 and 9) 


- 


- 


- 


185,850 

Long-term Liabilities Due Within One Year (Notes 1,21, and 26) 


1,603 


122 


121 


- 

Total Liabilities 


2,000,045 


524,776 


739,306 


186,861 


Deferred Inflows of Resources (Notes 1 and 13) 


912,706 


73,443 


53,787 


19,011 

Total Liabilities and Deferred Inflow s of Resources 


2,912,751 


598,219 


793,093 


205,872 


Fund Balances (Note 3): 

Nonspendable 


120,047 


85,546 


17,211 



Restricted 


1,085,986 


544,980 


98,225 


- 

Committed 


295,738 


1,662,763 


- 



Assigned 


- 


- 


- 


- 

Unassigned 


(653,415) 


(22,182) 


- 


(37,478) 

Total Fund Balances (Deficit), (Note 4) 


848,356 


2,271,107 


115,436 


(37,478) 

Total Liabilities, Deferred Inflows of Resources, and Fund Balances 

$ 

3,761,107 

$ 

2,869,326 

$ 

908,529 

$ 

168,394 


The accompanying notes are an integral part of this financial statement. 


46 Commonwealth of Virginia 




















































































Nonmajor 

Governmental 

Funds 


Total 

Governmental 

Funds 


$ 

933,685 

$ 

3,057,063 


54,576 


1,854,288 


71,590 


3,062,457 


9,686 


31,338 


- 


1,118 


71 


71 


122,763 


122,763 


5,335 


139,527 


19,741 


108,353 


1,751 


4,760 


18,992 


18,992 


- 


544,816 


1,238,190 


8,945,546 



- 


- 

$ 

1,238,190 

$ 

8,945,546 


$ 

57,981 $ 

790,945 


475 

699,897 


6,019 

59,615 


21 

4,185 

m 

2,529 

24,646 


- 

7,094 

m 

6,413 

99,941 


- 

73,199 

m 

5,989 

194,006 


3,497 

1,392,688 

m 

- 

185,850 


325 

2,171 


83,249 

3,534,237 


34,986 

1,093,933 

118,235 

4,628,170 




59,720 

282,524 


450,212 

2,179,403 


581,177 

2,539,678 


28,846 

28,846 


- 

(713,075) 


1,119,955 

4,317,376 

$ 

1,238,190 $ 

8,945,546 


Commonwealth of Virginia 47 




























































Reconciliation of the Balance Sheet - Governmental Funds to the 
Government-wide Statement of Net Position 

June 30, 2015 
(Dollars in Thousands) 

Total fund balances - governmental funds (see Balance Sheet - Governmental Funds) 

When capital assets (land, buildings, equipment, construction-in-progress, intangible assets, and/or infrastructure) that 
are to be used in governmental activities are purchased or constructed, the costs of those assets are reported as 
expenditures in governmental funds. However, the Statement of Net Fbsition includes those capital assets among the 
assets of the primary government as a w hole. 

Nondepreciable Capital Assets 
Depreciable Capital Assets 


Deferred outflow s associated w ith pension related costs are long-term in nature and therefore not reported in the funds. 
Deferred outflow s associated w ith loss on debt refundings are long-term in nature and therefore not reported in the 
funds. 


Long-term liabilities applicable to the primary government's governmental activities are not due and payable in the current 
period and, accordingly, are not reported as fund liabilities. All liabilities, both current and long-term, are reported in the 
Statement of Net Fbsition. 

Pension Liability 
OPEB Liability 
Capital Leases 
Installment Purchases 
Compensated Absences 
Uninsured Employer's Fund 
Bonds 
Notes 

Accrued Interest Fbyable 
Other Obligations 
Fbllution Remediation Liability 

Internal service funds are used by the primary government to charge costs to individual funds. The assets and liabilities 
of internal service funds are included in governmental activities in the Statement of Net Fbsition. 

Other long-term payables are not due and payable in the current period and, therefore, are not reported in the funds. 

Other long-term assets are not available to pay for current period expenditures and, therefore, are deferred in the funds. 
Deferred inflow s associated w ith Service Concession Arrangements are long-term in nature and therefore not reported 
in the funds. 

Deferred inflow s associated w ith pension related costs are long-term in nature and therefore not reported in the funds. 

Net position of governmental activities (see Government-wide Statement of Net Position) 


The accompanying notes are an integral part of this financial statement. 


$ 4,317,376 


7,294,715 

21,907,066 


419,929 

81,643 


(4,072,715) 

(643,668) 

(37,177) 

(81,899) 

(303,959) 

(33,156) 

(6,587,140) 

(307) 

(80,324) 

(52,478) 

(11,954) 

(469,592) 

(396,297) 

1,093,934 

(2,170,952) 

_ (736,188) 

$ 19,436,857 


48 Commonwealth of Virginia 






Commonwealth of Virginia 49 






Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 

For the Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 


Special Revenue 




General 

Commonwealth 

Transportation 


Federal 

Trust 


Literary 

Revenues 









Taxes 

$ 

18,157,864 

$ 

3,310,694 

$ 


$ 


Rights and Privileges 


78,745 


558,852 


- 


526 

Institutional Revenue 


38,148 







Interest, Dividends, Rents, and Other Investment Income 


42,120 


20,644 


720 


12,651 

Federal Grants and Contracts 


6,414 


1,326,091 


8,394,672 



Other (Note 27) 


463,215 


206,368 


117,381 


373,086 

Total Revenues 


18,786,506 


5,422,649 


8,512,773 


386,263 


Expenditures 

Current: 

General Government 


2,259,292 


74,273 


143,931 


21 

Education 


7,936,593 


1,089 


964,002 


449,638 

Transportation 


836 


5,327,222 


14,355 



Resources and Economic Development 


414,083 


10,970 


160,976 


- 

Individual and Family Services 


5,766,031 


- 


7,172,706 



Administration of Justice 


2,567,243 


9,632 


41,030 


- 

Capital Outlay 


6,722 


15,419 


12,376 



Debt Service: 

FVincipal Retirement 


- 


- 


- 



Interest and Charges 


- 


- 


- 


- 

Total Expenditures 


18,950,800 


5,438,605 


8,509,376 


449,659 

Revenues Over (Under) Expenditures 


(164,294) 


(15,956) 


3,397 


(63,396) 


Other Financing Sources (Uses) 

Transfers In (Note 32) 


844,391 


76,502 


2,334 


12,445 

Transfers Out (Note 32) 


(466,765) 


(381,202) 


(25,593) 


- 

Notes Issued 


433 


- 


- 



Insurance Recoveries 


65 


46 


3 


- 

Capital Leases Issued 




51 


33 



Bonds Issued 


- 


274,980 


- 


- 

Premium on Debt Issuance 




26,013 





Refunding Bonds Issued 


- 


- 


- 


- 

Sale of Capital Assets 


4,889 


19,438 


- 



Payment to Refunded Bond Escrow Agents 


- 


- 


- 


- 

Total Other Financing Sources (Uses) 


383,013 


15,828 


(23,223) 


12,445 


Net Change in Fund Balances 


218,719 


(128) 


(19,826) 


(50,951) 

Fund Balance, July 1, as restated (Note 2) 


629,637 


2,271,235 


135,262 


13,473 

Fund Balance (Deficit), June 30 (Note 4) 

$ 

848,356 

$ 

2,271,107 

$ 

115,436 

$ 

(37,478) 


The accompanying notes are an integral part of this financial statement. 


50 Commonwealth of Virginia 



















































































Nonmajor 

Total 

Governmental 

Governmental 

Funds 

Funds 


$ 88,664 $ 21,557,222 


339,900 

978,023 

264,484 

302,632 

14,572 

90,707 

- 

9,727,177 

354,177 

1,514,227 

1,061,797 

34,169,988 



66,664 

2,544,181 

20,624 

9,371,946 

5,646 

5,348,059 

343,117 

929,146 

482,513 

13,421,250 

71,919 

2,689,824 

216,912 

251,429 


441,100 

441,100 

275,492 

275,492 

1,923,987 

35,272,427 

(862,190) 

(1,102,439) 



770,452 

1,706,124 

(98,296) 

(971,856) 

6,921 

7,354 

591 

705 

154 

238 

395,590 

670,570 

123,726 

149,739 

535,640 

535,640 

107 

24,434 

(617,667) 

(617,667) 

1,117,218 

1,505,281 


255,028 

402,842 

864,927 

3,914,534 

$ 1,119,955 $ 

4,317,376 


Commonwealth of Virginia 51 






















































Reconciliation of the Statement of Revenues, Expenditures, and Changes in 

Fund Balances - Governmental Funds to the Government-wide Statement of Activities 

For the Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 

Net Change in fund balances - total government funds (See Statement of Revenues, Expenditures, and 

Changes in Fund Balances - Governmental Funds) $ 402,842 

When capital assets that are to be used in governmental activities are purchased or constructed, the resources 
expended for those assets are reported as expenditures in governmental funds. However, in the Statement of Activities, 
the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. As a result, 
fund balance decreases by the amount of financial resources expended, w hereas net position decreases by the amount 
of depreciation expense charged for the year. 


Nondepreciable Capital Assets Constructed/Acquired 2,111,401 

Nondepreciable Capital Assets Disposed (158,166) 

Depreciable Capital Assets Acquired 889,710 

Depreciable Capital Assets Disposed (389,290) 

Depreciation Expense (1,036,573) 


Debt proceeds provide current financial resources to governmental funds by issuing debt, w hich increases long-term 
debt in the Statement of Net Ftosition. 


Debt Issuance (670,570) 

Capital Lease Proceeds (238) 

Bond Premiums (149,739) 

Refunding Bonds Issued (535,640) 

Installment Purchase Proceeds (7,354) 

Other (35) 

Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term debt in the 
Statement of Net Position. 

Debt Service Fund Repayment of Debt Principal 441,100 

Payment to Refunded Bond Escrow Agent is an expenditure in the governmental funds, but the refunding reduces long¬ 
term debt in the Statement of Net Ftosition. 617,667 

Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in 

the funds. (593,183) 


Increases/decreases of expenses reported in the Statement of Activities that do not require the use of, or provide, 
current financial resources and, therefore, are not reported in the governmental funds. 


Increase in Pension Liability 64,122 

Increase in OPEB Liability (84,397) 

Increase in Other Long-term Liabilities 2,224 

Increase in Compensated Absences 10,380 

Decrease in Interest Expense, Amortization of Long-term Debt premium and discounts, and Accrued Interest Liability 66,785 

Decrease in Other Liabilities (134,251) 

Net Increase in Due to Component Units for Capital and Other Projects resulting from appropriation reductions or amounts 
due to Federal Governments for interest and rebate repayments, w hich are not reported as expenditures in the fund 

statements. (46,725) 

Net revenue (expenses) of certain activities of internal service funds is reported w ithin governmental activities. 39,300 

Deferred inflows and outflows associated w ith pension costs are not included in the funds. 3,978 

Amortization of deferred inflow s and outflow s associated w ith Service Concession Arrangements are not included in the funds. _24,767 


Change in net position of governmental activities (See Government-wide Statement of Activities) _$_868,115 


The accompanying notes are an integral part of this financial statement. 


52 Commonwealth of Virginia 





Proprietary Funds 


The Proprietary Funds account for operations that are financed and operated in a manner similar to private business enterprises. It 
is the intent that the cost of providing such goods or services will be recovered through user charges. 


Major Enterprise Funds 


The Virginia Lottery accounts for all receipts and expenses 
from the operations of the Virginia Lottery. 

The Virginia College Savings Plan administers the 
Virginia529 prePAID Program, which is a defined benefit 
program that offers contracts, for actuarially determined 
amounts, that provide for full future tuition and mandatory 
fee payments at Virginia’s higher education institutions and 
differing payouts at private or out-of-state institutions. The 
fund accounts for the actuarially determined contributions 
and payments for approved expenses. 


The Unemployment Compensation Fund administers the 
temporary partial income replacement payments to 
unemployed covered workers. 


Nonmajor Enterprise Funds include those operations of state agencies which are listed on page 211 in the Combining and 
Individual Fund Statements and Schedules section of this report. 


Internal Service Funds include those operations of state agencies which are listed on page 227 in the Combining and Individual 
Fund Statements and Schedules section of this report. 


Commonwealth of Virginia 53 










Statement of Fund Net Position - Proprietary Funds 

June 30, 2015 
(Dollars in Thousands) 


Business-type Activities 

_ Enterprise Funds _ 

Virginia 

College 

Virginia Savings Unemployment 

Lottery _ Plan _ Compensation Nonmajor 


Assets and Deferred Outflows of Resources 


Current Assets: 

Cash and Cash Equivalents (Notes 1 and 6) 

$ 98,964 

$ 

83,351 

$ 

762,607 

$ 

161,598 

Investments (Notes 1 and 6) 

21,538 






130 

Receivables, Net (Notes 1 and 7) 

72,343 


69,378 


127,812 


96,428 

Due from Other Funds (Note 9) 





682 


733 

Due from External Parties (Fiduciary Funds) (Note 9) 

- 


- 


- 


- 

Due from Component Units (Note 9) 








Inventory (Note 1) 

2,158 


- 


- 


65,931 

Prepaid Items (Note 1) 

318 


172 




1,629 

Other Assets (Notes 1 and 10) 

1 


- 


- 


120,391 

Restricted Cash and Cash Equivalents (Note 11) 







135,458 

Restricted Investments (Note 11) 

- 


- 


- 


25,776 

Total Current Assets 

195,322 


152,901 


891,101 


608,074 

Noncurrent Assets: 

Investments (Notes 1 and 6) 

118,158 


2,359,528 


- 



Receivables, Net (Notes 1 and 7) 

- 


159,417 


- 



Nondepreciable Capital Assets (Notes 1 and 12) 







6,579 

Depreciable Capital Assets, Net (Notes 1 and 12) 

6,504 


9,143 


- 


18,001 

Total Noncurrent Assets 

124,662 


2,528,088 


- 


24,580 

Total Assets 

319,984 


2,680,989 


891,101 


632,654 

Deferred Outflows of Resources (Notes 1, 13,14, and 15) 

2,756 


1,067 


- 


9,615 

Total Assets and Deferred Outflow s of Resources 

322,740 


2,682,056 


891,101 


642,269 


Liabilities and Deferred Inflows of Resources 

Current Liabilities: 

Accounts Payable (Notes 1 and 24) 

11,965 


942 


78 


43,926 

Amounts Due to Other Governments 





5,155 


2,284 

Due to Other Funds (Note 9) 

4,441 


64 


2,992 


15,722 

Due to External Parties (Fiduciary Funds) (Note 9) 

155 


59 




562 

Interfund Payable (Note 9) 

- 


- 


- 


37,065 

Unearned Revenue (Note 1) 

1,967 






1,930 

Obligations Under Securities Lending Program (Notes 1 and 6) 

99,456 


- 


- 


3,707 

Other Liabilities (Notes 1 and 25) 

64,093 


1,058 


37,663 


6,180 

Claims Payable Due Within One Year (Notes 1 and 23) 

- 


- 


- 


39,268 

Long-term Liabilities Due Within One Year (Notes 1, 21, and 26) 

19,175 


239,900 


- 


324,124 

Total Current Liabilities 

201,252 


242,023 


45,888 


474,768 

Noncurrent Liabilities: 

Interfund Payable (Note 9) 

- 


- 


- 


- 

Claims Payable Due in More Than One Year (Notes 1 and 23) 







21,843 

Long-term Liabilities Due in More Than One Year (Notes 1,21, and 26) 

147,641 


1,893,782 


- 


111,655 

Total Noncurrent Liabilities 

147,641 


1,893,782 


- 


133,498 

Total Liabilities 

348,893 


2,135,805 


45,888 


608,266 

Deferred Inflows of Resources (Notes 1, 13, 14, and 15) 

4,292 


1,581 


- 


15,498 

Total Liabilities and Deferred Inflow s of Resources 

353,185 


2,137,386 


45,888 


623,764 


Net Position 

Net Investment in Capital Assets 

6,504 


3,435 


- 


24,580 

Restricted for Unemployment Compensation 

- 


- 


845,213 


- 

Unrestricted 

(36,949) 


541,235 


- 


(6,075) 

Total Net Position (Deficit) (Note 4) 

$ (30,445) 

$ 

544,670 

$ 

845,213 

$ 

18,505 


Some amounts reported for business-type activities in the Statement 
of Net Position are different because certain internal service fund assets 


and liabilities are included in business-type activities. 
Net position of business-type activities 


The accompanying notes are an integral part of this financial statement. 


54 Commonwealth of Virginia 










































































































Governmental 

Activities 


Internal 

Service 

Total Funds 



$ 

1,106,520 $ 

461,923 

■ 

21,668 

234 


365,961 

8,993 

■ 

1,415 

52,087 

202 

19,340 


68,089 

18,308 

■ 

2,119 

5,799 


120,392 

11,061 

■ 

135,458 



25,776 



1,847,398 

577,947 


2,477,686 


159,417 


6,579 

52,390 

33,648 

93,712 

2,677,330 

146,102 

4,524,728 

724,049 

13,438 

5,475 

4,538,166 

729,524 




56,911 

82,687 



23,219 

2,006 

776 

345 

37,065 

18,524 

3,897 

116,142 

103,163 

6,699 

108,994 

1,217 

39,268 

201,236 

583,199 

10,161 

963,931 

439,906 


60,080 

21,843 

568,190 

2,153,078 

118,248 

2,174,921 

746,518 

3,138,852 

1,186,424 

21,371 

11,173 

3,160,223 

1,197,597 



■ 

34,519 

106,581 


845,213 

- 


498,211 

(574,654) 

$ 

1,377,943 $ 

(468,073) 


_ 1,519 

$ 1,379,462 


Commonwealth of Virginia 55 








































































Statement of Revenues, Expenses, and Changes in Fund Net Position - Proprietary Funds 

For the Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 


Business-type Activities 
Enterprise Funds 
Virginia 
College 

Virginia Savings Unemployment 

Lottery _ Plan _ Compensation 


Operating Revenues 


Charges for Sales and Services 

$ 1,843,876 $ 

160,367 $ 

680,122 

Interest, Dividends, Rents, and Other Investment Income 

- 

27,506 

12,531 

Other (Note 27) 

- 

- 


Total Operating Revenues 

1,843,876 

187,873 

692,653 

Operating Expenses 

Cost of Sales and Services 

133,230 

- 

- 

Prizes and Claims (Note 28) 

1,104,203 

- 

431,420 

Tuition Benefits Expense 

- 

135,063 

- 

Personal Services 

27,626 

9,263 

- 

Contractual Services 

29,083 

8,801 

- 

Supplies and Materials 

527 

43 

- 

Depreciation 

3,117 

527 

- 

Rent, Insurance, and Other Related Charges 

1,791 

144 

- 

Interest Expense 

- 

- 

- 

Non-recurring Cost Estimate Payments to Providers 

- 

- 


Other (Note 29) 

- 

1,284 

- 

Total Operating Expenses 

1,299,577 

155,125 

431,420 

Operating Income 

544,299 

32,748 

261,233 


Nonoperating Revenues (Expenses) 

Interest, Dividends, Rents, and Other Investment Income 

859 

- 

- 

Other (Note 30) 

321 

(182) 

(51) 

Total Nonoperating Revenues (Expenses) 

1,180 

(182) 

(51) 


Income Before Special Item and Transfers 

545,479 

32,566 

261,182 

Special Item (Note 31) 

- 

- 

- 

Transfers In (Note 32) 

- 

- 

- 

Transfers Out (Note 32) 

(546,181) 

(337) 

(2,042) 

Change in Net Position 

(702) 

32,229 

259,140 

Total Net Position (Deficit), July 1, as restated (Note 2) 

(29,743) 

512,441 

586,073 

Total Net Position (Deficit), June 30 (Note 4) 

$ (30,445) $ 

544,670 $ 

845,213 


Some amounts reported for business-type activies in the 
Statement of Activities are different because the net 
revenue (expense) of certain internal service funds is 
reported with business-type activities. 

Change in Net Position of business-type activities 


The accompanying notes are an integral part of this financial statement. 


56 Commonwealth of Virginia 

































































Governmental 

Activities 


Internal 

Service 

Nonmajor Total Funds 



_(825) 

$ 303,029 


Commonwealth of Virginia 57 






































































Statement of Cash Flows - Proprietary Funds 

For the Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 


Cash Flows from Operating Activities 

Virginia 

Lottery 

Business-type Activities 
Enterprise Funds 

Virginia 

College 

Savings Unemployment 

Plan Compensation 

Nonmajor 

Receipts for Sales and Services 

$ 1,844,350 

$ 166,248 $ 

706,661 

$ 1,208,993 

Receipts from Investments 

- 

- 

12,531 

- 

Internal Activity-Receipts from Other Funds 

- 

- 

5,257 

8,970 

Internal Activity-Payments to Other Funds 

- 

(404) 

- 

(2,380) 

Payments to Suppliers for Goods and Services 

(135,264) 

(1,587) 

- 

(488,266) 

Payments for Contractual Services 

(21,341) 

(8,282) 

- 

(69,973) 

Payments for Prizes, Claims, and Loss Control (Note 35) 

(1,137,625) 

- 

(447,855) 

(339,087) 

Payments for Tuition Benefits 

- 

(158,393) 

- 

- 

Payments to Employees 

(27,003) 

(8,996) 

- 

(130,372) 

Payments to Providers for Non-recurring Cost Estimates 

- 

- 

- 

(43,044) 

Payments for Interest 

- 

- 

- 

- 

Other Operating Revenue (Note 35) 

- 

(593) 

45 

6,056 

Other Operating Expense (Note 35) 

- 

(134) 

- 

(5,421) 

Net Cash Provided by Operating Activities 

523,117 

(12,141) 

276,639 

145,476 


Cash Flows from Noncapital Financing Activities 

Transfers In from Other Funds 

- 

- 

- 

57 

Transfers Out to Other Funds 

(569,977) 

(337) 

(1,738) 

(383,764) 

Other Noncapital Financing Receipt Activities (Note 35) 

499 

- 

25 

251,556 

Other Noncapital Financing Disbursement Activities (Note 35) 

- 

- 

- 

(26,693) 

Net Cash Used for Noncapital Financing 

Activities 

(569,478) 

(337) 

(1,713) 

(158,844) 

Cash Flows from Capital and Related Financing Activities 

Acquisition of Capital Assets 

(2,681) 

(112) 

- 

(10,833) 

Payment of principal and Interest on Bonds and Notes 

- 

(547) 

- 

(11,726) 

FToceeds from Sale of Capital Assets 

(67) 

- 

- 

3 

Other Capital and Related Financing Disbursement Activities (Note 35) 

- 

- 

- 

- 

Net Cash Used for Capital and Related 

Financing Activities 

(2,748) 

(659) 

- 

(22,556) 

Cash Flows from Investing Activities 

FTjrchase of Investments 

(578) 

(1,605,458) 

- 

- 

FToceeds from Sales or Maturities of Investments 

23,798 

1,527,588 

- 

10,285 

Investment Income on Cash, Cash Equivalents, and Investments 

681 

113,737 

- 

1,364 

Net Cash FTovided by (Used for) Investing Activities 

23,901 

35,867 

- 

11,649 

Net Increase (Decrease) in Cash and Cash Equivalents 

(25,208) 

22,730 

274,926 

(24,275) 

Cash and Cash Equivalents, July 1 

28,191 

60,621 

487,681 

317,963 

Cash and Cash Equivalents, June 30 

$ 2,983 

$ 83,351 $ 

762,607 

$ 293,688 


Reconciliation of Cash and Cash Equivalents 


Per the Statement of Net Position: 


Cash and Cash Equivalents 

$ 

98,964 

$ 

83,351 $ 

762,607 $ 

161,598 

Restricted Cash and Cash Equivalents 


- 


- 

- 

135,458 

Cash and Travel Advances 


1 


- 

- 

209 

Less: 

Securities Lending Cash Equivalents 


(95,982) 


- 

- 

(3,577) 

Cash and Cash Equivalents per the Statement of Cash Flows 

$ 

2,983 

$ 

83,351 $ 

762,607 $ 

293,688 


The accompanying notes are an integral part of this financial statement. 


58 Commonwealth of Virginia 



















































































Governmental 

Activities 


Internal 

Service 

Total Funds 


$ 3,926,252 $ 

754,514 

12,531 

- 

14,227 

1,242,533 

(2,784) 

(10,520) 

(625,117) 

(139,593) 

(99,596) 

(392,205) 

(1,924,567) 

(1,294,554) 

(158,393) 

- 

(166,371) 

(52,798) 

(43,044) 

- 

- 

(8) 

5,508 

- 

(5,555) 

(21,137) 

933,091 

86,232 



57 

5,293 

(955,816) 

(11,110) 

252,080 

153 

(26,693) 

(1,900) 


(730,372) 

(7,564) 


(13,626) 

(4,538) 

(12,273) 

(14,381) 

(64) 

1,502 

- 

(632) 


(25,963) _ (18,049) 


(1,606,036) 


1,561,671 

- 

115,782 

1,140 

71,417 

1,140 

248,173 

61,759 

894,456 

393,702 

$ 1,142,629 $ 

455,461 


$ 

1,106,520 

$ 

461,923 

135,458 


210 


3 



(99,559) 


(6,465) 

$ 

1,142,629 

$ 

455,461 


Continued on next page 


Commonwealth of Virginia 59 

























































Statement of Cash Flows - Proprietary Funds (Continued from previous page) 
For the Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 


Business-type Activities 

_ Enterprise Funds _ 

Virginia 

College 

Virginia Savings Unemployment 

Lottery _ Plan _ Compensation Nonmajor 


Reconciliation of Operating Income 


To Net Cash Provided by (Used for) 

Operating Activities: 

Operating Income (Loss) 

$ 

544,299 

$ 

32,748 

$ 

261,233 

$ 

160,450 

Adjustments to Reconcile Operating 

Income to Net Cash Provided by (Used for) 

Operating Activities: 

Depreciation 


3,117 


527 


- 


3,514 

Interest, Dividends, Rents, and Other Investment Income 


(6,749) 


(27,506) 


- 


- 

Miscellaneous Nonoperating Income 






(380) 


13 

Other 


- 


222 


- 


(7,997) 

Change in Assets, Deferred Outflows of Resources, Liabilities, and 

Deferred Inflow s of Resources 

(Increase) Decrease in Accounts Receivable 


1,021 


5,288 


13,910 


(3,300) 

(Increase) Decrease in Due from Other Funds 


- 


- 


594 


119,823 

(Increase) Decrease in Due from External Parties (Fiduciary Funds) 






- 


- 

(Increase) Decrease in Due from Component Units 


- 


- 


- 


- 

(Increase) Decrease in Other Assets 


- 


21 




(120,182) 

(Increase) Decrease in Inventory 


(2,034) 


- 


- 


(3,743) 

(Increase) Decrease in Prepaid Items 


(46) 


(126) 




843 

(Increase) Decrease in Deferred Outflows of Resources 


(1,281) 


(524) 




(3,428) 

Increase (Decrease) in Accounts Payable 


(2,217) 


(354) 


(112) 


(6,784) 

Increase (Decrease) in Amounts Due to Other Governments 


- 


- 


(945) 


1,370 

Increase (Decrease) in Due to Other Funds 


21 


3 


153 


2,463 

Increase (Decrease) in Due to External Parties (Fiduciary Funds) 


36 


15 


- 


91 

Increase (Decrease) in Unearned Revenue 


(548) 




- 


(259) 

Increase (Decrease) in Other Liabilities 


2,116 


843 


2,186 


(25) 

Increase (Decrease) in Claims Payable: Due Within One Year 






- 


(2,656) 

Increase (Decrease) in Claims Payable: Due in More Than One Year 


- 


- 


- 


596 

Increase (Decrease) in Long-term Liabilities: Due Within One Year 


(5,321) 


15,032 


- 


(44) 

Increase (Decrease) in Long-term Liabilities: Due in More Than One Year 


(13,589) 


(39,911) 


- 


(10,767) 

Increase (Decrease) in Deferred Inflow s of Resources 


4,292 


1,581 




15,498 

Net Cash Provided by (Used for) Operating Activities 

$ 

523,117 

$ 

(12,141) 

$ 

276,639 

$ 

145,476 


Noncash Investing, Capital, and Financing Activities: 

The follow ing transactions occurred prior to the Statement of Net Position date: 

Capital Leases Used to Finance Capital Assets 

$ 

- 

$ 

- 

$ 

- 

$ 

- 

Installment Purchases Used to Finance Capital Assets 


- 






- 

Change in Fair Value of Investments 


- 


86,230 


- 


- 

Capital Asset Addition Included in Accounts Payable 


- 


- 


- 


- 

Total Noncash, Investing, Capital, and Financing Activities 

$ 

- 

$ 

86,230 

$ 

- 

$ 

- 


The accompanying notes are an integral part of this financial statement. 


60 Commonwealth of Virginia 































































Governmental 

Activities 


Internal 

Service 

Total Funds 


$ 998,730 $ 44,986 


7,158 

17,217 

(34,255) 

- 

(367) 

30 

(7,775) 

(80) 



16,919 

502 

120,417 

4,064 


(8) 

- 

(1,733) 

(120,161) 

(7,947) 

(5,777) 

(1,162) 

671 

(760) 

(5,233) 

(1,771) 

(9,467) 

24,049 

425 

(2,733) 

2,640 

314 

142 

38 

(807) 

(10,450) 

5,120 

365 

(2,656) 

(5,872) 

596 

25,815 

9,667 

857 

(64,267) 

(10,662) 

21,371 

11,173 

$ 933,091 $ 

86,232 



$ 86,230 $ 19,519 


Commonwealth of Virginia 61 















































62 Commonwealth of Virginia 






Fiduciary Funds 


Private Purpose Trust Funds 

Private Purpose Trust Funds are trust arrangements that benefit individuals, private organizations, or other governments. 


Pension and Other Employee Benefit Trust Funds 

Pension and Other Employee Benefit Trust Funds reflect the activities of the retirement systems and postemployment benefits 
administered by the Virginia Retirement System or the Department of Human Resource Management. 


Investment Trust Fund 

Investment Trust Fund reflects the external portion of the Local Government Investment Pool sponsored by the Commonwealth. 


Agency Funds 

Agency Funds report those funds for which the Commonwealth acts solely in a custodial capacity. 


A listing of all Fiduciary Funds is located on pages 236-237 in the Combining and Individual Fund Statements and Schedules 
section of this report. Combining financial statements for all Fiduciary Funds begin on page 238. 


Commonwealth of Virginia 63 











Statement of Fiduciary Net Position - Fiduciary Funds 

June 30, 2015 
(Dollars in Thousands) 


Pension 
and Other 


Assets and Deferred Outflows of Resources 

Private 

Purpose 

Trust 

Funds 

Employee 

Benefit 

Trust 

Funds 

Investment 

Trust 

Fund 

Agency 

Funds 

Cash and Cash Equivalents (Notes 1 and 6) 

$ 83,595 

$ 297,567 

$ 1,163,404 

$ 378,542 

Investments (Notes 1 and 6): 

Bonds and Mortgage Securities 

88,834 

21,012,652 

38,229 


Stocks 

342,974 

23,695,874 

- 

- 

Fixed Income Commingled Funds 

- 

745,010 

- 


Index and Fooled Funds 

1,592,316 

6,978,380 

- 

- 

Real Estate 

2,246 

6,983,580 

- 


Private Equity 

- 

8,154,219 

- 

- 

Mutual and Money Market Funds 

843,587 

- 

- 


Short-term Investments 

- 

288,384 

1,525,541 

70,009 

Hybrid Defined Contribution Investments 

- 

23,346 

- 

n 

Other 

661,086 

3,378,240 

- 

319,451 

Total Investments 

3,531,043 

71,259,685 

1,563,770 

389,460 

Receivables, Net (Notes 1 and 7): 

Accounts 

6 

- 

- 

58,210 

Contributions 

- 

243,323 

- 

- 

Interest and Dividends 

2,174 

224,154 

755 


Security Transactions 

- 

1,450,934 

- 

- 

Other Receivables 

- 

188,069 

- 

- 

Total Receivables 

2,180 

2,106,480 

755 

58,210 

Due from Other Funds (Note 9) 

- 

20 

- 


Due from Internal Parties (Governmental Funds and Business-type Activities) (Note 9) 

- 

25,767 

- 

- 

Due from Component Units (Note 9) 

- 

29,352 

- 


Prepaid Items (Note 1) 

236 

- 

- 

- 

Other Assets (Notes 1 and 10) 

- 

- 

- 

26 

Furniture and Equipment (Note 1) 

618 

29,889 

- 

- 

Total Assets 

3,617,672 

73,748,760 

2,727,929 

826,238 

Deferred Outflow of Resources (Notes 1, 13,14, and 15) 

448 

- 

- 

- 

Total Assets and Deferred Outflows of Resources 

3,618,120 

73,748,760 

2,727,929 

826,238 


Liabilities and Deferred Inflows of Resources 

Accounts Payable and Accrued Expenses (Notes 1 and 24) 

2,864 

44,213 

- 

6,102 

Amounts Due to Other Governments 

- 

- 

- 

256,309 

Due to Other Funds (Note 9) 

20 

- 

- 

- 

Due to Internal Parties (Governmental Funds and Business-type Activities) (Note 9) 

26 

176 

- 

71 

Obligations Under Securities Lending Program (Notes 1 and 6) 

188 

3,378,981 

- 

380 

Other Liabilities (Notes 1 and 25) 

3,786 

307,834 

- 

563,069 

Retirement Benefits Payable 

- 

324,173 

- 

- 

Refunds Payable 

- 

4,148 

- 


Compensated Absences Payable (Notes 1 and 21) 

280 

2,819 

- 

- 

Insurance Premiums and Claims Payable 

- 

64,072 

- 

307 

Payable for Security Transactions 

- 

1,424,730 

- 

- 

Net Pension Liability 

3,288 

- 

- 


Other Postemployment Benefits (OPEB) Liability 

590 

- 

- 

- 

Total Liabilities 

11,042 

5,551,146 

- 

826,238 

Deferred Inflows of Resources (Notes 1, 13,14, and 15) 

587 

- 

- 

- 

Total Liabilities and Deferred Inflows of Resources 

11,629 

5,551,146 

- 

826,238 


Net PDsition Held in Trust for Pension/ 

Other Employment Benefits, Fbol 

Participants, and Other Purposes 

$ 3,606,491 

$ 68,197,614 

$ 2,727,929 

$ 


The accompanying notes are an integral part of this financial statement. 


64 Commonwealth of Virginia 

































































































Statement of Changes in Fiduciary Net Position - Fiduciary Funds 

For the Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 


Pension 
and Other 
Private Employee 

Purpose Benefit Investment 

Trust Trust Trust 


Additions: 

Funds 


Funds 


Fund 

Investment Income: 

Interest, Dividends, and Other Investment Income 

$ 59,425 

$ 

3,400,718 

$ 

2,197 

Distributions to Shareholders from Net Investment Income 

- 


- 


(2,197) 

Total Investment Income 

59,425 


3,400,718 


- 

Less Investment Expenses 

4,413 


402,089 


- 

Net Investment Income 

55,012 


2,998,629 


- 

Proceeds from Unclaimed Property 

10,499 


- 


- 

Contributions: 

Participants 

402,333 


- 


- 

Member 

- 


961,042 


- 

Employer 

- 


2,676,817 


- 

Total Contributions 

402,333 


3,637,859 


- 

Shares Sold 

- 


- 


4,134,434 

Reinvested Distributions 

- 


- 


2,248 

Other Revenue (Note 27) 

13 


2,164 


- 

Total Additions 

467,857 


6,638,652 


4,136,682 

Deductions: 

Loan Servicing Payments 

36 


- 


- 

Educational Expense Benefits 

168,798 


- 


- 

Retirement Benefits 

- 


4,115,209 


- 

Refunds to Former Members 



106,236 



Retiree Health Insurance Credits 

- 


147,989 


- 

Insurance Premiums and Claims 

62,707 


183,973 


- 

Trust Payments 

2,836 


- 


- 

Administrative Expenses 

9,497 


21,861 


- 

Other Expenses (Note 29) 

- 


3,913 


- 

Shares Redeemed 

23,151 




4,136,004 

Long-term Disability Benefits 

- 


37,731 


- 

Total Deductions 

267,025 


4,616,912 


4,136,004 

Transfers: 

Transfers In 

- 


10 


- 

Transfers Out 

- 


(10) 


- 

Total Transfers 

- 


- 


- 

Net Increase 

200,832 


2,021,740 


678 

Net Position Held in Trust for Pension/ 

Other Employment Benefits, Pool 

Participants, and Other Purposes 

July 1, as restated (Note 2) 

3,405,659 


66,175,874 


2,727,251 

June 30 

$ 3,606,491 

$ 

68,197,614 

$ 

2,727,929 


The accompanying notes are an integral part of this financial statement. 


Commonwealth of Virginia 65 



























































66 Commonwealth of Virginia 






Component Units 


Component Units are organizations that are legally separate from the primary government. Each discrete component unit serves 
or benefits those outside of the primary government. 


The Virginia Housing Development Authority provides 
investment in and stimulates construction of low to moderate 
income housing for the citizens of the Commonwealth. 

The Virginia Public School Authority provides financing to 
cities and counties for capital construction of primary and 
secondary schools. 


The Virginia Resources Authority provides financing for the 
construction of local water supply and wastewater treatment 
facilities and other local infrastructure projects. 

The Virginia College Building Authority provides financing of 
capital projects and equipment purchases by state-supported 
colleges and universities. 


Nonmajor Component Units include those listed on pages 260-261 in the Combining and Individual Fund Statements and 
Schedules section of this report. 


Commonwealth of Virginia 67 








Statement of Net Position - Component Units 

June 30, 2015 
(Dollars in Thousands) 



Virginia 

Virginia 



Housing 

Public 

Virginia 


Development 

School 

Resources 


Authority 

Authority 

Authority 

Assets and Deferred Outflows of Resources 




Cash and Cash Equivalents (Notes 1 and 6) 

$ 2,145 

$ 19,369 

$ 8,141 

Investments (Notes 1 and 6) 

18,117 

3,296,386 

4,488 

Receivables, Net (Notes 1 and 7) 

6,794,866 

65,287 

4,303,934 

Contributions Receivable, Net (Notes 1 and 8) 

- 

- 

- 

Due from Primary Government (Note 9) 

- 

- 

- 

Due from Component Units (Note 9) 

- 

- 

- 

Inventory (Note 1) 

- 

- 

- 

Prepaid Items (Note 1) 

3,091 

- 

41 

Other Assets (Notes 1 and 10) 

9,122 

- 

393 

Loans Receivable from Primary Government (Notes 1 and 9) 

- 

185,850 

- 

Restricted Cash and Cash Equivalents (Notes 6 and 11) 

656,523 

154,325 

302,989 

Restricted Investments (Notes 6 and 11) 

508,388 

- 

370,099 

Other Restricted Assets (Note 11) 

52,093 

- 

- 

Nondepreciable Capital Assets (Notes 1 and 12) 

8,623 

- 

- 

Depreciable Capital Assets, Net (Notes 1 and 12) 

17,704 

- 

113 

Total Assets 

8,070,672 

3,721,217 

4,990,198 

Deferred Outflows of Resources (Notes 1, 13, 14, and 15) 

- 

151,715 

80,586 

Total Assets and Deferred Outflow s of Resources 

8,070,672 

3,872,932 

5,070,784 


Liabilities and Deferred Inflows of Resources 

Accounts Payable (Notes 1 and 24) 

41,203 

67 

222 

Amounts Due to Other Governments 

- 

108,742 

- 

Due to Primary Government (Note 9) 

- 

- 

- 

Due to Component Units (Note 9) 

- 

- 

- 

Due to External Parties (Fiduciary Funds) (Note 9) 

- 

- 

- 

Unearned Revenue (Note 1) 

- 

- 

- 

Obligations Under Securities Lending Program (Notes 1 and 6) 

- 

- 

- 

Other Liabilities (Notes 1,14 and 25) 

521,867 

58,331 

48,144 

Loans Payable to Primary Government (Notes 1 and 9) 

- 

- 

- 

Claims Payable (Notes 1 and 23): 

Due Within One Year 

- 

- 

- 

Due in More Than One Year 

- 

- 

- 

Long-term Liabilities (Notes 1,21, and 26): 

Due Within One Year 

287,329 

291,734 

154,205 

Due in More Than One Year 

4,399,988 

3,445,857 

3,355,268 

Total Liabilities 

5,250,387 

3,904,731 

3,557,839 

Deferred Inflows of Resources (Notes 1, 13, 14, 15, and 37) 

- 

- 

29,917 

Total Liabilities and Deferred Inflow s of Resources 

5,250,387 

3,904,731 

3,587,756 


Net Position 

Net Investment in Capital Assets 

8,706 

- 

113 

Restricted For: 

Nonexpendable: 

Higher Education 

- 

- 

- 

Other 

- 

- 

- 

Expendable: 

Bond Indenture 

2,682,279 

- 

- 

Capital Projects/Construction/Capital Acquisition 

- 

- 

1,462,097 

Debt Service 

- 

- 

- 

Gifts and Grants 

- 

- 

- 

Higher Education 

- 

- 

- 

Virginia Pooled Investment Program 

- 

- 

7,747 

Other 

- 

- 

- 

Unrestricted 

129,300 

(31,799) 

13,071 

Total Net Position (Deficit) (Note 4) 

$ 2,820,285 

$ (31,799) 

$ 1,483,028 


The accompanying notes are an integral part of this financial statement. 


68 Commonwealth of Virginia 















































































Virginia 


College 

Building 

Authority 

Nonmajor 

Component 

Units 


Total 


$ 47 

$ 

2,558,840 

$ 

2,588,542 

- 


10,390,576 


13,709,567 

25,184 


1,366,241 


12,555,512 

- 


380,944 


380,944 

4,089 


8,208 


12,297 

- 


143,170 


143,170 

- 


129,934 


129,934 

- 


135,892 


139,024 

- 


92,368 


101,883 

- 


- 


185,850 

167,019 


877,253 


2,158,109 

- 


4,358,046 


5,236,533 

- 


225,585 


277,678 

- 


2,687,504 


2,696,127 

- 


14,354,083 


14,371,900 

196,339 


37,708,644 


54,687,070 

26,191 


444,163 


702,655 

222,530 


38,152,807 


55,389,725 



4 

1,147,258 

1,188,754 


- 

6,149 

114,891 


- 

21,055 

21,055 


135,133 

8,037 

143,170 


- 

29,352 

29,352 


- 

337,618 

337,618 


- 

20,744 

20,744 


80,568 

859,270 

1,568,180 


- 

18,992 

18,992 



- 

100,864 

100,864 


- 

41,529 

41,529 



208,055 

548,465 

1,489,788 


3,312,159 

11,245,393 

25,758,665 


3,735,919 

14,384,726 

30,833,602 


- 

550,863 

580,780 


3,735,919 

14,935,589 

31,414,382 




- 

10,094,255 

10,103,074 



- 

3,196,208 


3,196,208 

■ 

- 

159,825 


159,825 


■ 

- 

- 


2,682,279 


- 

234,799 


1,696,896 

■ 

- 

101,253 


101,253 


- 

141,371 


141,371 

■ 

30,665 

5,683,909 


5,714,574 


- 

- 


7,747 

■ 

- 

10,546 


10,546 


(3,544,054) 

3,595,052 


161,570 

$ 

(3,513,389) $ 

23,217,218 

$ 

23,975,343 


Commonwealth of Virginia 69 









































































Statement of Activities - Component Units 

For the Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 


Program Revenues 


Expenses 


Operating Capital 

Charges for Grants and Grants and Net (Expenses) 
Services Contributions Contributions Revenue 


Virginia Housing Development Authority 

$ 423,294 $ 

447,436 $ 

124,973 $ 

- $ 

149,115 

Virginia Public School Authority 

141,711 

135,924 

8,161 

- 

2,374 

Virginia Resources Authority 

158,410 

148,908 

- 

54,357 

44,855 

Virginia College Building Authority 

767,765 

74,298 

42,255 

140 

(651,072) 

Total Major Component Units 

1,491,180 

806,566 

175,389 

54,497 

(454,728) 


Nonmajor Component Units: 


Higher Education 

13,022,422 

8,843,459 

2,449,364 

572,236 

(1,157,363) 

Other 

902,573 

697,871 

34,336 

31,545 

(138,821) 

Total Nonmajor Component Units 

13,924,995 

9,541,330 

2,483,700 

603,781 

(1,296,184) 

Total Component Units 

$ 15,416,175 

$ 10,347,896 

$ 2,659,089 $ 

658,278 $ 

(1,750,912) 


The accompanying notes are an integral part of this financial statement. 


70 Commonwealth of Virginia 









































Operating 
Appropriations 
from Primary 

Government 

General Revenues 

Unrestricted 

Grants and Investment 

Contributions Earnings 

Miscellaneous 

Contributions 

to Permanent 

and Term 

Endowments 

Change in 

Net Position 

Net Position 

(Deficit) 

July 1, 

as restated 

(Note 2) 

Net Position 
(Deficit) 

June 30 

(Note 4) 










$ 

$ 

$ 27,579 

$ 


$ 

$ 176,694 

$ 2,643,591 

$ 2,820,285 

- 

- 

119 


320 

- 

2,813 

(34,612) 

(31,799) 


- 

- 


- 

- 

44,855 

1,438,173 

1,483,028 

285,915 

- 

- 


- 

- 

(365,157) 

(3,148,232) 

(3,513,389) 

285,915 

- 

27,698 


320 

- 

(140,795) 

898,920 

758,125 


1,710,512 

75,712 

334,479 


85,843 


151,053 

1,200,236 

19,985,792 

21,186,028 

105,057 

17,577 

12,785 


18,220 


3,055 

17,873 

2,013,317 

2,031,190 

1,815,569 

93,289 

347,264 


104,063 


154,108 

1,218,109 

21,999,109 

23,217,218 

$ 2,101,484 $ 

93,289 $ 

374,962 

$ 

104,383 

$ 

154,108 ! 

5 1,077,314 

$ 22,898,029 1 

$ 23,975,343 


Commonwealth of Virginia 71 



























































72 Commonwealth of Virginia 






Index to the Notes to the Financial Statements 


1. Summary of Significant Accounting Policies 

A. Basis of Presentation.74 

B. Reporting Entity.74 

C. Government-wide and Fund Financial 

Statements.80 

D. Measurement Focus, Basis of Accounting, 

and Financial Statement Presentation.81 

E. Budgetary Process.82 

F. Cash, Cash Equivalents, Investments, 

and Derivatives.83 

G. Receivables.83 

H. Contributions Receivable, Net.84 

I. Internal Balances.84 

J. Inventory.84 

K. Prepaid Items.84 

L. Interfund Loans Receivable/Payable.84 

M. Other Assets.84 

N. Capital Assets.84 

O. Deferred Outflows of Resources.85 

P. Accounts Payable.85 

Q. Unearned Revenue.85 

R. Unearned Taxes.85 

S. Obligations Under Securities Lending 

Program.85 

T. Other Liabilities.86 

U. Claims Payable.86 

V. Long-term Liabilities.86 

W. Deferred Inflows of Resources.86 

X. Nonspendable Fund Balances.86 

Y. Restricted Fund Balances.86 

Z. Committed Fund Balances.86 

AA. Assigned Fund Balances.86 

BB. Unassigned Fund Balances.86 

CC. Cash Management Improvement Act.87 

DD. Investment Income.87 

EE. Intrafund Eliminations.87 

FF. Interfund Activity.87 

2. Restatement of Beginning Balances.87 

3. Net Position/Fund Balance Classifications.90 

4. Deficit Fund Balances/Net Position.92 

5. Revenue Stabilization Fund.92 

6. Cash, Cash Equivalents, and investments.93 

7. Receivables.102 

8. Contributions Receivable, Net.104 

9. Interfund and Inter-Entity Assets/Liabilities.104 

10. Other Assets.108 

11. Restricted Assets.109 

12. Capital Assets.110 

13. Deferred Outflows and Deferred Inflows 

of Resources.112 

14. Derivatives.114 

15. Retirement and Pension Systems 

A. Administration.122 

B. Summary of Significant Accounting 

Policies (Virginia Retirement System).122 

C. Plan Description.122 

D. Funding Policy.124 

E. Changes in Net Pension Liability.124 

F. Changes to and Sensitivity of 

Discount Rate.126 

G. Pension Related Deferred Outflows 

and Deferred Inflows.127 

H. Defined Contribution Plan for 

Political Appointees.129 


I. Defined Contribution Plan for Public 

School Superintendents.129 

J. Virginia Supplemental Retirement Plan.129 

K. FHigher Education Fund (Nonmajor 

Component Unit).129 

L. Other Component Units.130 

16. Other Employment Benefits.131 

17. Other Postemployment Benefits (OPEB) 

A. Virginia Retirement System (The System) 

Administered Plans.132 

B. Pre-Medicare Retiree Flealthcare.133 

C. Annual OPEB Cost and Net OPEB 

Obligation.133 

D. Funded Status and Funding Progress.135 

E. FHigher Education Fund (Nonmajor 

Component Unit).136 

F. Other Component Units.136 

18. Deferred Compensation Plans.136 

19. State Non-Arbitrage Pool.137 

20. Commitments 

A. Construction Projects.138 

B. Operating Leases.138 

C. Investment Commitments - Virginia 

Retirement System.139 

D. Virginia Transportation Infrastructure 

Bank.139 

E. Tobacco Grants.139 

F. Other Commitments.139 

21. Accrued Liability for Compensated 

Absences.140 

22. Pollution Remediation Obligations.140 

23. Insurance 

A. Self-Insurance.141 

B. Public Entity Risk Pools.142 

24. Accounts Payable.143 

25. Other Liabilities.144 

26. Long-term Liabilities.147 

27. Other Revenue.163 

28. Prizes and Claims.164 

29. Other Expenses.164 

30. Other Non-Operating Revenue/Expenses.165 

31. Special Item.165 

32. Transfers.166 

33. On-Behalf Payments.167 

34. Endowments.167 

35. Cash Flows - Additional Detailed 

Information.168 

36. Tobacco Settlement and Securitization.169 

37. Service Concession Arrangements.170 

38. Information Technology Infrastructure 

Partnership - Northrop Grumman.171 

39. Contingencies 

A. Grants and Contracts.172 

B. Litigation .172 

C. Subject to Appropriation.172 

D. Bailment Inventory.172 

E. Loan Guarantees.172 

F. Regional Wet Weather Management Plan.173 

40. Pending Governmental Accounting 

Standards Board Statement.173 

41. Subsequent Events.173 


Commonwealth of Virginia 73 










































































































Notes to the Financial Statements 


June 30, 2015 


1. SUMMARY OF SIGNIFICANT ACCOUNTING 

POLICIES 

A. Basis of Presentation 

The accompanying financial statements have been 
prepared in conformance with accounting principles 
generally accepted in the United States of America 
as prescribed by the Governmental Accounting 
Standards Board (GASB) and the Financial 
Accounting Standards Board (FASB). 

B. Reporting Entity 

For financial reporting purposes, the 
Commonwealth of Virginia's (the Commonwealth’s) 
reporting entity consists of (1) the primary 
government, (2) component unit organizations for 
which the primary government is financially 
accountable (blended component units), and (3) 
other component unit organizations for which the 
nature and significance of their relationship with the 
primary government is such that exclusion would 
cause the reporting entity’s financial statements to 
be misleading, and they are financially accountable 
to the primary government (discrete component 
units). The funds of all agencies, boards, 
commissions, foundations, and authorities that 
have been identified as part of the primary 
government or a component unit have been 
included. GASB standards require the inclusion of 
numerous organizations that raise and hold funds 
for the direct benefit of the primary government. 

Section 2100 of the GASB Codification of 
Governmental Accounting and Financial Reporting 
Standards (GASB Codification) describes the 
criteria for determining which organizations, 
functions, and activities should be considered part 
of the Commonwealth for financial reporting 
purposes. The basic criteria include appointing a 
voting majority of an organization’s governing body, 
and the Commonwealth’s ability to impose its will 
on that organization or the potential for the 
organization to provide specific financial benefits to, 
or impose specific financial burdens on, the 
Commonwealth. Additionally, in instances where 
the voting majority is not appointed, the above 
benefit/burden criteria apply. If the organization’s 
assets are also held for, or can be accessed by, the 
Commonwealth, the organization is considered part 
of the reporting entity. 

(1) Primary Government - A primary government 
consists of all the organizations that make up 
its legal entity. All funds, organizations, 
institutions, agencies, and departments are, for 
financial reporting purposes, part of the primary 
government. 


(2) Blended Component Units - Though legally 
separate entities, these component units are, 
in substance, part of the primary government’s 
operations. The blended component units 
serve or benefit the primary government almost 
exclusively. Financial information from these 
units is combined with that of the primary 
government. The Commonwealth’s blended 
component units are: 

Virginia Public Building Authority (VPBA) 

(nonmajor governmental fund) - The Authority 
was created as a body politic and corporate 
and is fiscally independent. A government 
instrumentality, the Authority finances the 
acquisition and construction of buildings for the 
use of the Commonwealth and other approved 
purposes. The Governor appoints the 7- 
member board, and the primary government is 
able to impose its will on the Authority. The 
Auditor of Public Accounts audits the Authority, 
and a separate report is issued from the 
Department of the Treasury, Post Office Box 
1879, Richmond, Virginia 23218-1879. 

Route 460 Funding Corporation of Virginia 

(nonmajor enterprise) - The Corporation, a 
private, non-stock nonprofit corporation was 
created to develop, construct, and provide 
financing for the U.S. Route 460 Corridor 
Improvements Project. The Corporation is a 
blended component unit of the Virginia 
Department of Transportation (VDOT) (primary 
government) because it is fiscally dependent 
on the primary government and there is a 
financial benefit/burden relationship between 
the primary government and the Corporation. 
The corporate offices of the Corporation are 
located at VDOT, 1401 East Broad Street, 
Richmond, Virginia 23219. Dixon Hughes 
Goodman, LLP audits the Corporation, and a 
separate report is available from VDOT. As 
discussed in Note 31, the continuing 
operations of the Corporation will cease during 
fiscal year 2016. 

(3) Discrete Component Units - Discretely 
presented component units are reported in a 
separate column in the government-wide 
financial statements to emphasize that they are 
legally separate from the primary government. 
They are financially accountable to the primary 
government, or have relationships with the 
primary government such that exclusion would 
cause the reporting entity’s financial 
statements to be misleading. These discrete 
component units serve or benefit those outside 
of the primary government. 

GASB statements generally require any 
organization that raises and holds economic 
resources for the direct benefit of the reporting 


74 Commonwealth of Virginia 







entity to be reported as a component unit, even 
if the reporting entity is not financially 
accountable for the organization. The entities 
are included in the Commonwealth’s reporting 
entity as nonprofit charitable organizations and 
exist solely to support the Commonwealth’s 
higher education institutions and certain state 
agencies. The higher education institution 
nonprofit organizations are included in the 
applicable higher education institution’s column 
in the accompanying financial statements. In 
all instances where separate disclosure of 
these nonprofit organizations is required in the 
accompanying footnotes, the entities’ totals are 
aggregated and disclosed as “foundations.” 

The criteria for reporting certain component 
units as major component units focuses on the 
nature and significance of the component unit’s 
relationship to the primary government versus 
other component units. 

Discretely presented component units are: 

Virginia Housing Development Authority 
(VHDA) (major) - The Authority was created 
as a political subdivision and instrumentality of 
the Commonwealth and is granted both politic 
and corporate powers by the Code of Virginia. 
The Governor appoints a majority of the 
Authority’s board members and the remaining 
board members are ex-officio. The 
Commonwealth may make grants to the 
Authority including, but not limited to, reserve 
funds, which is a potential financial 
benefit/burden to the primary government. The 
Commonwealth is not legally obligated by the 
debt of the Authority. The Authority was 
created in the public interest to provide 
investment in and stimulate construction of low 
to moderate income housing which benefits the 
citizens of the Commonwealth. The 
administrative offices of the Authority are 
located at 601 South Belvidere Street, 
Richmond, Virginia 23220. KPMG, LLP audits 
the Authority, and a separate report is issued. 

Virginia Public School Authority (VPSA) 

(major) - The Authority was created as a public 
body corporate, and an agency and 
instrumentality of the Commonwealth to 
finance capital projects of city and county 
school boards. The Governor appoints the 
board members, who serve at his pleasure. 
Therefore, the primary government is able to 
impose its will on the Authority. The Auditor of 
Public Accounts audits the Authority, and a 
separate report is issued from the Department 
of the Treasury, Post Office Box 1879, 
Richmond, Virginia 23218-1879. 

Virginia Resources Authority (VRA) (major) 
- The Authority was created as a public body 
corporate and a political subdivision of the 
Commonwealth to provide financing of 
infrastructure projects for water supply, 
wastewater, storm water, solid waste 
treatment, airports, public safety, brownfields 


remediation and redevelopment, and recycling. 
The Governor appoints the 11-member board 
and the Executive Director of the Authority. 
The primary government is able to impose its 
will on the Authority, and there is a financial 
benefit/burden to the primary government. The 
Commonwealth does not guarantee any bonds 
issued by the Virginia Resources Authority. 
The administrative offices of the Authority are 
located at 1111 East Main Street, Suite 1920, 
Richmond, Virginia 23219. Brown, Edwards 
and Company, LLP audits the Authority, and a 
separate report is issued. 

Virginia College Building Authority (VCBA) 

(major) - The Authority was created as a public 
body corporate, a political subdivision, and an 
agency and instrumentality of the 
Commonwealth. The Governor appoints a 
majority of the board and members serve at his 
pleasure. Therefore, the primary government is 
able to impose its will on the Authority. The 
Authority finances certain capital projects and 
equipment purchases of state-supported 
colleges and universities. The Auditor of Public 
Accounts audits the Authority, and a separate 
report is issued from the Department of the 
Treasury, Post Office Box 1879, Richmond, 
Virginia 23218-1879. 

Only the activity of the Authority that relates to 
the financing of capital projects and equipment 
purchases by state-supported colleges and 
universities is included in the financial 
statements. The state-supported colleges and 
universities reported revenue from the 
Authority of $513.2 million as Program 
Revenue Capital Grants and Contributions for 
the 21 st Century Program and $62.2 million as 
Program Revenue Operating Grants and 
Contributions for equipment. The Authority 
reported Operating Appropriations from 
Primary Government of approximately $285.9 
million. In addition, the Authority reported 
approximately $29.8 million in payments from 
the state-supported colleges and universities 
for 21 st Century and Equipment Program debt 
service costs and approximately $12.5 million 
in interest on Build America Bonds. The 
Authority assists private institutions of higher 
education in the financing and refinancing of a 
broad range of facilities. The Authority is 
authorized to issue obligations and lend the 
proceeds to private institutions; however, such 
financings or refinancings are not obligations of 
the primary government nor the Authority, but 
are payable solely from the revenues pledged 
by the respective private institution. This 
indebtedness, totaling $701.6 million, is not 
included in the financial statements. 

Higher Education Institutions (nonmajor) - 

The Commonwealth’s higher education 
institutions are granted broad corporate powers 
by state statutes. The Governor appoints the 
members of each institution’s board of 
trustees. In addition to the annual 
appropriations to support the institutions’ 


Commonwealth of Virginia 75 




operations, the Commonwealth provides 
funding for, and construction of, major 
academic plant facilities for the institutions. 
Institutions reported Operating Appropriations 
from Primary Government of approximately 
$1.7 billion. Therefore, there is a financial 
benefit/burden to the primary government. The 
higher education institutions are: the University 
of Virginia, including the University of Virginia 
Medical Center and the University of Virginia’s 
College at Wise; Virginia Polytechnic Institute 
and State University; Virginia Commonwealth 
University, including the Virginia 
Commonwealth University Health System 
Authority, the College of William & Mary, 
including Richard Bland College and the 
Virginia Institute of Marine Science; Virginia 
Military Institute; Virginia State University; 
Norfolk State University; University of Mary 
Washington; James Madison University; 
Radford University; Old Dominion University; 
George Mason University; Virginia Community 
College System; Christopher Newport 
University; and Longwood University. The 
Southwest Virginia Higher Education Center, 
Roanoke Higher Education Authority, Institute 
for Advanced Learning and Research, 
Southern Virginia Higher Education Center, 
and New College Institute are also included as 
higher education institutions. The colleges and 
universities are funded through state 
appropriations, tuition, federal grants, and 
private donations and grants. As previously 
noted, certain foundations are considered 
component units of the higher education 
institutions, and are included in the 
accompanying financial statements as well as 
the higher education institutions’ individually 
published financial statements. The Auditor of 
Public Accounts (APA) does not audit the 
Roanoke Higher Education Authority, the 
Institute for Advanced Learning and Research, 
and the component units of the higher 
education institutions, including foundations, 
but relies on the reports issued by other 
auditors to render her opinion. 

The APA audits the colleges and universities, 
and individual reports are issued under 
separate cover. Complete financial statements 
for each institution may be obtained from their 
respective administrative offices. The 
addresses for these institutions may be 
obtained from the Department of Accounts, 
101 North 14th Street, Richmond, Virginia 
23219-3638. 

Innovation and Entrepreneurship 
Investment Authority (IEIA) (nonmajor) - The 
Authority is granted corporate powers by the 
Code of Virginia. The Authority serves to 
facilitate the marketing, organization, and 
development of scientific research and 
technology by the state’s institutions of higher 
education and private industry in the 
Commonwealth. In addition, the Authority 
serves to promote the economic development 
of the Commonwealth by attracting and 


retaining high technology jobs and businesses 
in Virginia. The Governor and General 
Assembly appoint the 15-member board, and 
there is a financial benefit/burden to the 
primary government. The Authority’s combined 
financial statements include the accounts of 
the Center for Innovative Technology (CIT) 
after elimination of all significant intercompany 
balances and transactions. CIT is a non-stock, 
not-for-profit corporation, which acts as the 
operating arm of the Authority. The address for 
the administrative offices of the Authority is CIT 
Building, Suite 600, 2214 Rock Hill Road, 
Herndon, Virginia 20170-4228. The Auditor of 
Public Accounts audits the Authority, and a 
separate report is issued. 

Virginia Economic Development 
Partnership (VEDP) (nonmajor) - The 
Partnership was created as a body corporate 
and operates to encourage, stimulate, and 
support the development and expansion of 
commerce in the Commonwealth. The 
Governor appoints the 15-member board, and 
there is a financial benefit/burden to the 
primary government. The administrative offices 
are located at 901 East Byrd Street, Post 
Office Box 798, Richmond, Virginia 23218- 
0798. The Auditor of Public Accounts audits 
the Partnership, and a separate report is 
issued. 

Virginia Outdoors Foundation (nonmajor) - 
The Foundation was created as a body politic 
and is administratively assigned to the 
Department of Conservation and Recreation 
(part of primary government) and charged with 
promoting preservation through the acceptance 
of donated conservation easements and 
raising funds for the purchase of preservation 
land. The Governor appoints the 7-member 
board of trustees, and the primary government 
can impose its will on the Foundation. The 
administrative offices of the Foundation are 
located at 39 Garret St, Suite 200, Warrenton, 
VA 20186. Hicok, Fern & Company CPAs 
audits the Foundation, and a separate report is 
issued. 

Virginia Port Authority (VPA) (nonmajor) - 
The Authority was established as a corporate 
body and operates to serve the citizens and 
promote commerce through the harbors and 
ports of Virginia. The Governor appoints a 
majority of the 12-member board, and the 
primary government is able to impose its will 
on the Authority. There is also a financial 
benefit/burden to the primary government. The 
administrative offices of the Authority are 
located at 600 World Trade Center, Norfolk, 
Virginia 23510. PBMares, LLP, audits the 
Authority, and a separate report is issued. 

Virginia Tourism Authority (nonmajor) - The 
Authority was created as a public body 
corporate and as a political subdivision of the 
Commonwealth. The Authority encourages, 
stimulates, and promotes tourism and film 


76 Commonwealth of Virginia 




production industries of the Commonwealth. 
The Governor appoints all of the board 
members, and there is a financial 
benefit/burden to the primary government. The 
administrative offices are located at 901 East 
Byrd Street, 19th Floor, Richmond, Virginia 
23218-0798. The Auditor of Public Accounts 
audits the Authority, and a separate report is 
issued. 

Virginia Foundation for Healthy Youth 

(nonmajor) - The Foundation was created as a 
body corporate and as a political subdivision of 
the Commonwealth. The Foundation was 
established to determine the appropriate 
recipients of monies in the Virginia Tobacco 
Settlement Fund and to distribute monies in 
this fund for such efforts as restricting the use 
of tobacco products by minors and the 
enforcement of laws restricting the distribution 
of tobacco products to minors. The Governor 
appoints the majority of the board, and there is 
a financial benefit/burden to the primary 
government. The administrative offices are 
located at 701 East Franklin Street, Suite 500, 
Richmond, Virginia 23219. The Auditor of 
Public Accounts audits the Foundation, and a 
separate report is issued. 

Tobacco Indemnification and Community 
Revitalization Commission (nonmajor) - The 
Commission was created as a body corporate 
and as a political subdivision of the 
Commonwealth. The Commission was 
established to determine the appropriate 
recipients of the monies in the Tobacco 
Indemnification and Community Revitalization 
Fund. This fund is to provide payments to 
tobacco farmers as compensation for the 
adverse economic effects resulting from loss of 
investment in specialized tobacco equipment 
and barns, as well as lost tobacco production 
opportunities. It also provides monies to 
revitalize tobacco dependent communities. The 
Governor appoints the majority of the board, 
and there is a financial benefit/burden to the 
primary government. The administrative offices 
are located at 701 East Franklin Street, Suite 
501, Richmond, Virginia 23219. The Auditor of 
Public Accounts audits the Commission, and a 
separate report is issued. 

Hampton Roads Sanitation District 
Commission (nonmajor) - The Commission 
was established as a political subdivision of the 
Commonwealth and a government 
instrumentality. The Commission, which is the 
governing board of the district, was granted 
corporate powers by the Code of Virginia. The 
Governor appoints the Commission members, 
who serve at his pleasure. Therefore, the 
primary government is able to impose its will 
on the Commission. The Commonwealth is not 
obligated by the debt of the Commission. The 
Commission was established to benefit the 
inhabitants of the district and operates a 
sewage system for 17 localities in the 
Chesapeake Bay area. The address for the 


administrative offices of the Commission is 
1434 Air Rail Avenue, Virginia Beach, Virginia 
23455. KPMG, LLP, audits the Commission, 
and a separate report is issued. 

Virginia Biotechnology Research 
Partnership Authority (nonmajor) - The 
Authority is a legally separate, political 
subdivision of the Commonwealth created by 
the General Assembly to assist in the 
development of a biotechnology research park. 
The Governor appoints the board members of 
the Authority, and there is a potential financial 
benefit/burden to the primary government. The 
administrative offices of the Authority are 
located at 800 East Leigh Street, Richmond, 
Virginia 23219. The Auditor of Public Accounts 
audits the Authority, and a separate report is 
issued. 

The Authority issued the 2002 Series, the 
2013B Series, and the 2013A Series of 
revenue bonds for specific customers. The 
2002 Series variable rate revenue bonds were 
for a facility built specifically for the United 
Network for Organ Sharing. The 2013B Series 
variable rate revenue bonds were for the 
Virginia Blood Services project. The 2013A 
Series variable rate revenue bonds were to 
assist the Institute for Transfusion Medicine 
(ITxM). The bonds are secured by a letter of 
credit and are payable solely from the 
payments made by the borrower under the 
loan agreement. Neither of these bonds 
constitutes a debt or pledge of the Authority or 
the Commonwealth. Accordingly, the bonds 
are not reported as liabilities in the 
accompanying financial statements. 

Virginia Small Business Financing 
Authority (VSBFA) (nonmajor) - Section 
2.2-2280 of the Code of Virginia established 
the Authority as a public body corporate and a 
political subdivision of the Commonwealth. The 
Governor appoints the 11-member board, and 
the primary government is able to impose its 
will on the Authority. The Authority was created 
to assist small businesses in the 
Commonwealth in obtaining financing for new 
businesses or the expansion of existing 
businesses. The Authority can provide financial 
assistance to small businesses by providing 
loans, guarantees, insurance, and other 
assistance, thereby encouraging the 
investment of private capital in small 
businesses in the Commonwealth. The 
Authority can loan money to local governments 
as defined by the Code of Virginia for 
economic development purposes. The 
Authority also guarantees loans made to small 
businesses by banks. The administrative 
offices of the Authority are located at 101N. 
14 th Street, 11 th Floor, Richmond, Virginia 
23219. The Auditor of Public Accounts audits 
the Authority, and a separate report is issued. 

The Authority has issued Industrial 
Development Revenue Bonds to provide 


Commonwealth of Virginia 77 




financial assistance to private sector entities for 
the acquisition and construction of industrial 
and commercial facilities deemed to be in the 
public interest. The bonds are secured by the 
property financed and are payable solely from 
payments received on the underlying mortgage 
loans. Upon repayment of the bonds, 
ownership of the acquired facilities transfers to 
the private sector entity served by the bond 
issuance. Neither the Authority nor the 
Commonwealth is obligated in any manner for 
repayment of the bonds. Accordingly, the 
bonds are not reported as liabilities on the 
accompanying financial statements. 

Virginia School for the Deaf and Blind 
Foundation (nonmajor) - The Foundation 
operates as a nonprofit educational and 
fundraising organization solely in connection 
with, and exclusively for the benefit of the 
Virginia School for the Deaf and Blind (part of 
primary government). The Foundation uses a 
December 31 calendar year-end. The 
administrative offices are located at Post Office 
Box 2069, Staunton, Virginia 24402. 

Science Museum of Virginia Foundation 

(nonmajor) - The Foundation is a non-stock, 
nonprofit corporation established to implement 
and fund programs, projects, and operations 
that are authorized and approved by the 
trustees of the Science Museum of Virginia 
(part of primary government). There is a 
financial benefit/burden relationship between 
the primary government and the Foundation. 
The administrative offices of the Foundation 
are located at 2500 West Broad Street, 
Richmond, Virginia, 23220. Cherry, Bekaert, & 
Holland, LLP, audits the Foundation, and a 
separate report is issued. 

Virginia Commercial Space Flight Authority 
(VCSFA) (nonmajor) - The Authority is a 
legally separate political subdivision of the 
Commonwealth created by the General 
Assembly to facilitate and coordinate scientific 
and technological research and development 
and to promote the industrial and economic 
development of the Commonwealth. The 
Governor appoints the 9-member board and 
there is a potential financial benefit/burden to 
the primary government. The Commonwealth 
provided $26.0 million in bond offerings 
through the Virginia Public Building Authority 
(nonmajor) to the VCSFA in fiscal year 2009. 
The Commonwealth provided $25.6 million in 
capital contributions through a memorandum of 
understanding in September 2012. The 
Commonwealth provided an additional $10.0 
million of capital contributions through a 
settlement agreement by and among the 
VCSFA, the Commonwealth, and Orbital 
Sciences Corporation to the VCSFA in January 
2014. The Commonwealth approved the 
conversion of a $5.0 million interest-free note 
to repair Pad 0A into a grant in March 2015. 
The administrative offices of the Authority are 
located at 4111 Monarch Way, Suite 303, 


Norfolk, Virginia 23508. Dixon Hughes 
Goodman, LLP audits the Authority, and a 
separate report is issued. 

Danville Science Center, Inc. (nonmajor) - 
The Center is a nonprofit corporation formed 
for the purpose of implementing and funding 
those programs, projects and operations which 
are authorized and approved by the trustees of 
the Science Museum of Virginia (part of 
primary government). There is a financial 
benefit/burden to the primary government. The 
administrative offices of the Center are located 
at 677 Craghead Street, Post Office Box 167, 
Danville, Virginia 24541. Kania & Associates, 
LLP, audits the Center, and a separate report 
is issued. 

Virginia Museum of Fine Arts Foundation 

(nonmajor) - The Foundation operates as a 
nonprofit corporation under the laws of Virginia 
to fund exhibitions, programs, and capital asset 
expansion to ensure that the Virginia Museum 
of Fine Arts (part of primary government) has 
the space and resources for art to help improve 
the quality of life for many. There is a financial 
benefit/burden to the primary government. The 
administrative offices of the Foundation are 
located at 200 North Boulevard, Richmond, 
Virginia 23220. Dixon Hughes Goodman, LLP, 
audits the Foundation, and a separate report is 
issued. 

A. L. Philpott Manufacturing Extension 
Partnership (nonmajor) - The Partnership has 
the mission to foster economic growth by 
enhancing the competitiveness of Virginia's 
manufacturers. The Partnership provides 
manufacturing firms with fee-based technology 
consulting services, access to business 
modernization resources, and support for 
interfirm collaboration. Further, the Partnership 
provides direct assistance to increase sales, 
decrease costs, and improve quality, 
productivity, and competitiveness. The 
Partnership has a 24-member board of 
trustees. The board consists of the presidents 
of two public four-year institutions of higher 
education; three community college presidents; 
one president of a private four-year institution 
of higher education; the director of Virginia's 
Center for Innovative Technology; Virginia's 
Secretary of Commerce and Trade; Virginia's 
Secretary of Technology; and 15 citizen 
members, representing manufacturing 
industries, appointed by the Governor. There 
is also a financial benefit/burden to the primary 
government. The administrative office is 
located at 32 Bridge Street, Suite 200, 
Martinsville, VA 24112. The Auditor of Public 
Accounts audits the Partnership, and a 
separate report is issued. 

Virginia University Research Partnership 

(nonmajor) - The Partnership was created as a 
nonprofit, non-stock corporation to receive 
grant monies appropriated by the General 
Assembly. The Partnership oversees the 


78 Commonwealth of Virginia 




administration of those grant payments for use 
by a nonprofit, public benefit research institute 
that conducts research and development for 
government agencies, commercial businesses, 
foundations, and other organizations as well as 
commercializes technology. Due to the 
primary government being the sole source of 
funding, it is able to impose its will on the 
Partnership. The administrative offices are 
located at 901 East Byrd Street, Post Office 
Box 798, Richmond, Virginia 23218-0798. 

Fort Monroe Authority (nonmajor) - The 
Authority is a legally separate, political 
subdivision of the Commonwealth created by 
the General Assembly to assist in formulating a 
reuse plan for Fort Monroe. The Governor 
appoints a majority of the 17-member board, 
and there is a potential financial benefit/burden 
to the primary government. The administrative 
offices of the Authority are located at 20 Ingalls 
Road, Fort Monroe, Virginia 23651. Cherry, 
Bekaert, & Holland, LLP, audits the Authority, 
and a separate report is issued. 

Assistive Technology Loan Fund 
Authority (nonmajor) - The Authority was 
created as a political subdivision and public 
body corporate by the Code of Virginia. The 
Governor appoints the board of directors as 
directed by the Code and the primary 
government is able to impose its will on the 
Authority. The Authority manages a fund to 
provide loans to individuals to acquire assistive 
technology, other equipment, or other 
authorized purposes designed to help disabled 
individuals become more independent. The 
administrative offices are located at 1602 
Rolling Hills Drive, Suite 107, Henrico, Virginia 
23229. The Auditor of Public Accounts audits 
the Authority, and a separate report is issued. 

Virginia Sesquicentennial of the American 
Civil War Foundation (nonmajor) - The 
Foundation was established to prepare for and 
commemorate the sesquicentennial of 
Virginia's participation in the American Civil 
War. The Foundation was formed under the 
Virginia Nonstock Corporation Act. The 
economic resources received or held by the 
Foundation are entirely or almost entirely for 
the direct benefit of the primary government. 
The administrative offices are located at the 
General Assembly Building, 2 nd Floor, 201 
North 9 th Street, Richmond, VA 23219. Brown, 
Edwards & Company, LLP, audits the 
Foundation, and a separate report is issued. 

Virginia Land Conservation Foundation 

(nonmajor) - The Foundation was created as a 
body politic and corporate to serve the 
Department of Conservation and Recreation 
(part of primary government) by acquiring 
interests in preservation land and providing 
grants to other entities to acquire interests in 
preservation land. The Governor appoints the 
18-member board, and the primary 
government can impose its will on the 


Foundation. The administrative offices of the 
Foundation are located at 600 East Main 
Street, 24 th Floor, Richmond, VA 23219. The 
Auditor of Public Accounts audits the 
Foundation as part of the Department of 
Conservation and Recreation (part of primary 
government) and discloses its existence in that 
report. 

Virginia Arts Foundation (nonmajor) - The 
Foundation was created as a body politic and 
corporate to serve the Virginia Commission for 
the Arts (part of primary government) by 
promoting the arts in the Commonwealth. The 
Governor appoints the board of trustees for the 
Virginia Commission for the Arts, which also 
serves as the board for the Virginia Arts 
Foundation. The Director of the Virginia 
Commission for the Arts serves as the board 
chairman. In addition, the primary government 
can impose its will on the Foundation. The 
administrative offices of the Foundation are 
located at 1001 East Broad Street, Suite 3300, 
Richmond, VA 23219. The Auditor of Public 
Accounts audits the Foundation as part of the 
Virginia Commission for the Arts. 

Library of Virginia Foundation (nonmajor) - 
The Foundation was created as a private, 
nonprofit 501(c)(3) corporation supporting the 
Library of Virginia (part of primary 
government). The Foundation was established 
upon receipt of a major bequest. The articles 
of incorporation stipulate that the Foundation 
shall at all times be operated solely in 
connection with, and exclusively for the benefit 
of, the Library of Virginia. The Foundation is 
governed by a separate board of directors, and 
promotes and supports the Library of Virginia 
in all activities. The administrative offices of 
the Foundation are located at 800 East Broad 
Street, Richmond, Virginia 23219. Mitchell, 
Wiggins and Company, LLP audits the 
Foundation, and a separate report is issued. 

Virginia Health Workforce Development 
Authority (nonmajor) - The Authority is a 
legally separate public body corporate and a 
political subdivision of the Commonwealth 
created by the General Assembly. The 
Authority facilitates the development of a 
statewide health professions pipeline. The 
Governor appoints a majority of the board 
members, and the primary government is able 
to impose its will on the Authority. The 
administrative offices of the Authority are 
located at 6800 Paragon Place, Suite 620, 
Richmond, Virginia 23294. The Auditor of 
Public Accounts audits the Authority, and a 
separate report is issued. 

(4) Related Organizations - Organizations for 
which the primary government appoints a 
majority of the board, but is not financially 
accountable, are related organizations. Related 
organizations are: 


Commonwealth of Virginia 79 




Tobacco Settlement Financing 

Corporation - The Corporation was created 
by the Tobacco Settlement Financing 
Corporation Act, Chapters 482 and 488 of the 
Acts of the General Assembly during the 2002 
General Assembly Session. The Corporation is 
a public body corporate entity and an 
independent instrumentality of the 
Commonwealth, managed by a 6-member 
board, including the State Treasurer. The 
Corporation purchased all of the future tobacco 
settlement revenue allocated to the Tobacco 
Indemnification and Community Revitalization 
Commission (nonmajor component unit). 
Neither the Commonwealth’s nor the Virginia 
Foundation for Healthy Youth’s (nonmajor 
component unit) tobacco revenue was 
securitized. The administrative offices of the 
Corporation are located at 101 N. 14th Street, 
3rd Floor, Post Office Box 1879, Richmond, 
Virginia 23218-1879. Brown, Edwards, and 
Company, LLP audits the Corporation, and a 
separate report is issued. 

Virginia Recreational Facilities Authority- 

The Authority was created as a political 
subdivision and instrumentality of the 
Commonwealth and given separate corporate 
powers by the Code of Virginia. The Governor 
appoints the 13-member board of directors. 
The Authority operates educational programs, 
tourism, and commerce in the Roanoke Valley. 
The address for the administrative offices of 
the Authority is 5204 Bernard Drive SW, Post 
Office Box 29800, Roanoke, Virginia 24018. 

Jamestown-Yorktown Foundation, Inc. - 

The nonprofit corporation was created by the 
Code of Virginia to assist the Jamestown- 
Yorktown Foundation (Foundation). The 
corporation board consists of five members 
selected from the Foundation’s board of 
trustees. Several Commonwealth officials 
serve as ex-officio members of the 
Foundation's board, and the Governor appoints 
12 members. The Corporation’s basic 
activities consist of soliciting and collecting 
contributions, purchasing artifacts, sponsoring 
events and exhibits, and overseeing 
investments. The administrative offices of the 
Corporation are located at 2207 Colonial 
Parkway, Post Office Box 3605, Williamsburg, 
Virginia 23187. Keiter Certified Public 
Accountants audits the Corporation, and a 
separate report is issued. 

Jamestown-Yorktown Educational Trust - 

The Trust was created as a nonprofit 
corporation by the Code of Virginia to assist 
the Jamestown-Yorktown Foundation 
(Foundation). The Trust board consists of six 
members selected from the Foundation's board 
of trustees. Several Commonwealth officials 
serve as ex-officio members of the 
Foundation's board, and the Governor appoints 
12 members. The Trust operates the 
Jamestown Settlement and Yorktown Victory 
Centers' gift shops and cafe. The address for 


the administrative offices of the Trust is 2207 
Colonial Parkway, Post Office Box 3605, 
Williamsburg, Virginia 23187. Keiter Certified 
Public Accountants audits the Trust, and a 
separate report is issued. 

Virginia Birth-Related Neurological Injury 
Compensation Program - The Program was 
created to provide a no-fault alternative for 
birth-related neurological injuries. The 
Governor appoints the 9-member board. The 
administrative offices of the Program are 
located at 7501 Boulders View Drive, Suite 
210, Richmond, Virginia 23225. KPMG, LLP, 
audits the Program, and a separate report is 
issued. 

Chesapeake Bay Bridge and Tunnel 
Commission - The Commission was created 
to establish policy and administer operations of 
the Chesapeake Bay Bridge Tunnel District. 
Any of the 11 members of the Commission 
appointed or reappointed on or after July 1, 
1998, shall be appointed by the Governor, 
subject to confirmation by each house of the 
General Assembly. The administrative offices 
of the Commission are located at 32386 
Lankford Highway, Cape Charles, Virginia 
23310. KPMG, LLP, audits the Commission, 
and a separate report is issued. 

C. Government-wide and Fund Financial 
Statements 

The government-wide financial statements, the 
Statement of Net Position and the Statement of 
Activities, report information on all nonfiduciary 
activities of the primary government and component 
units. For the most part, the effect of interfund 
activity has been removed from these statements. 
Governmental activities, which are normally 
supported by taxes and intergovernmental 
revenues, are reported separately from business- 
type activities, which rely to a significant extent on 
fees and charges for support. Also, the primary 
government activity is reported separately from the 
legally separate component units for which the 
Commonwealth is financially accountable. 

The Statement of Activities demonstrates the 
degree to which direct expenses of a specific 
function or segment are offset by program 
revenues. Direct expenses are those that are 
clearly identifiable with a specific function, segment, 
or component unit. In addition, to the extent that 
indirect costs are allocated to the various functions, 
the program expenses will include both direct and 
indirect costs. Program revenues include charges 
to customers who purchase, use, or directly benefit 
from goods or services provided by a given 
function, segment, or component unit, as well as 
investment income generated by operations. 
Program revenues also include grants, 
contributions, and investment income that are 
restricted to meeting the operational or capital 
requirements of a particular function, segment, or 
component unit. Taxes and other items properly 


80 Commonwealth of Virginia 




excluded from program revenues are reported as 
general revenues. 

Fund equity is restricted when constraints are 
placed on them that are imposed by external 
parties or constitutional provisions. When both 
restricted and unrestricted resources are available 
for use, the Commonwealth’s policy is to use the 
restricted resources first. Some institutions of 
higher education may follow a different policy. 
When committed, assigned, and unassigned 
resources are available for use, the 
Commonwealth’s policy is to use the committed 
resources first, assigned resources next, and 
unassigned resources last. 

Separate financial statements are provided for 
governmental funds, proprietary funds, fiduciary 
funds, and component units. However, fiduciary 
funds are not included in the government-wide 
statements. Major governmental funds, enterprise 
funds, and component units are reported in 
separate columns in the fund financial statements, 
with nonmajor funds being aggregated into a single 
column. 

D. Measurement Focus, Basis of Accounting, and 
Financial Statement Presentation 

Government-wide Financial Statements - The 

government-wide financial statements are reported 
using the economic resources measurement focus 
and the full accrual basis of accounting. Revenues 
are recorded when earned and expenses are 
recognized when a liability is incurred, regardless of 
the timing of related cash flows. Grants and similar 
items are recognized as revenue as soon as all 
eligibility requirements imposed by the provider 
have been met. 

Governmental Fund Financial Statements - The 

governmental fund financial statements are 
reported using the current financial resources 
measurement focus and the modified accrual basis 
of accounting. Revenues are recognized as soon 
as they are both measurable and available. 
Revenues are considered to be available when they 
are collectible within the current period or soon 
enough thereafter to pay liabilities of the current 
period. For this purpose, the primary government 
considers revenues to be available if they are 
collected within 60 days of the end of the current 
fiscal year (or one year for Medicaid). Significant 
revenues subject to accrual include federal grants 
and income and sales taxes. Income tax revenues 
for tax underpayments are only recognized to the 
extent of the primary government’s estimated 
refunds for tax overpayments received. Revenues 
that the primary government earns by incurring 
obligations are recognized in the same period as 
when the obligations are recognized. 

Expenditures generally are recorded when a liability 
is incurred, as under full accrual accounting. 
However, expenditures related to debt service, 
compensated absences, and claims and judgments 
are recorded only when the payment is due. 


The primary government reports the following major 
governmental funds: 

General Fund - Accounts for the transactions 
related to resources received and used for 
those services traditionally provided by a state 
government, and which are not accounted for 
in any other fund. These services include 
general government, legislative and judicial 
activities, public safety, health and behavioral 
health programs, resources and economic 
development, licensing and regulation, and 
primary and secondary education. 

Commonwealth Transportation Special 
Revenue Fund - Accounts for the revenues 
and expenditures associated with highway 
operations, maintenance, construction, and 
other transportation related activities. Funding 
for these programs is received from highway 
user taxes, fees, and funds received from the 
federal government. 

Federal Trust Special Revenue Fund - 

Accounts for all federal dollars received by the 
Commonwealth except those received by the 
Commonwealth Transportation Fund, the 
Unemployment Compensation Fund, certain 
Medicaid reimbursements recorded in the 
General Fund, and component units. 

Literary Fund Special Revenue Fund - 

Accounts for revenues from fines, forfeitures, 
and proceeds from unclaimed property used 
primarily to support public education in the 
Commonwealth. This fund provides low 
interest loans to school divisions for 
construction, renovations, and expansion of 
school buildings. 

Proprietary Funds, Fiduciary Funds, and 
Component Units Financial Statements - The 

financial statements of the proprietary funds, 
fiduciary funds, and component units are reported 
using the economic resources measurement focus 
and the full accrual basis of accounting. As with the 
government-wide statements, revenues are 
recorded when earned and expenses are 
recognized when a liability is incurred, regardless of 
the timing of related cash flows. Grants and similar 
items are recognized as revenue as soon as all 
eligibility requirements imposed by the provider 
have been met. Agency funds have no 
measurement focus since they only report assets 
and liabilities. 

Proprietary funds distinguish operating revenues 
and expenses from nonoperating items. Operating 
revenues and expenses generally result from 
providing services and producing and delivering 
goods in connection with a proprietary fund’s 
principal ongoing operations. Revenues and 
expenses not meeting this definition are reported as 
nonoperating. 

Foundations’ (component units) financial 
statements are prepared using the economic 
resources measurement focus and the full accrual 


Commonwealth of Virginia 81 




basis of accounting. The financial statements are 
prepared under FASB rather than GASB standards. 
In some instances, activities of the foundations 
(component units) are reported separately within 
the footnotes because of the different reporting 
standards. Also, some foundations (component 
units) have a December 31 st or March 31 st year- 
end rather than a fiscal year-end. Foundations 
(component units) with different year-ends are 
included in these financial statements for the year 
ending December 31, 2014, or March 31, 2015. 
Significant intrafund activity/balances between each 
higher education institution and their foundations 
have been eliminated. 

The following amounts could not be eliminated due 
to the differing year-ends: 

• University of Virginia (nonmajor component 
unit): 

o institution assets of $429,925 
o institution revenue of $7.7 million 
o foundation assets of $1.0 million 
o foundation liabilities of $436,727 
o foundation expenses of $7.1 million 

• Old Dominion University (nonmajor component 
unit): 

o institution liabilities of $62.1 million 
o foundation assets of $51.0 million 

The primary government reports the following major 
enterprise funds: 

Virginia Lottery Fund - Accounts for all 
receipts and expenses of the Virginia Lottery. 

Virginia College Savings Plan Fund - 

Administers the Virginia529 prePAID Program. 

Unemployment Compensation Fund - 

Accounts for receipts from employers and 
expenses incurred to provide benefits to 
eligible unemployed workers. 

Additionally, the primary government reports the 
following fund types: 

Governmental Fund Types: 

Special Revenue Funds - Account for 
transactions related to resources received and 
used for restricted, committed, or specific 
purposes. 

Debt Service Funds - Account for 
transactions related to resources retained and 
used for the payment of interest and principal 
on long-term obligations. 

Capital Project Funds - Account for 
transactions related to resources received and 
used for the acquisition, construction, or 
improvement of capital facilities not reported in 
the other governmental or proprietary funds. 
The primary resource for these funds is the 
proceeds of bond issues and energy 


performance contracts. Principal uses are for 
construction and improvement of state office 
buildings, correctional and behavioral health 
facilities, and parks. 

Permanent Funds - Account for transactions 
of the Commonwealth Health Research Fund 
and the Behavioral Health Endowment Funds 
whose principal must remain intact and whose 
income is used to benefit the Commonwealth’s 
citizens and behavioral health patients. 

Proprietary Fund Types: 

Enterprise Funds - Account for transactions 
related to resources received and used for 
financing self-supporting activities of the 
primary government that offer products and 
services on a user-charge basis to external 
users. 

Internal Service Funds - Account for 
transactions related to the financing and sale of 
goods or services provided by the agencies of 
the primary government to other agencies and 
institutions of the Commonwealth. Activities 
include the provision of information technology, 
manufacturing activities, insurance programs, 
fleet services, facilities and property 
management, engineering and payroll 
services. 

Fiduciary Fund Types: 

Private Purpose Trust Funds - Account for 
transactions of all other trust arrangements in 
which the principal and income benefit 
individuals, private organizations, or other 
governments. These trusts include those for 
escheat property, educational savings plan, 
and others. 

Pension and Other Employee Benefit Trust 
Funds - Account for transactions of the 
Commonwealth administered retirement 
systems and other employment benefits. 

Investment Trust Fund - Accounts for the 
external portion of the Local Government 
Investment Pool that is sponsored by the 
Commonwealth. 

Agency Funds - Account for amounts held in 
trust by the primary government for others. 
Agency funds include those funds established 
to account for the collection of taxes and fees 
for distribution to localities and other states, 
employee benefits, deposits of insurance 
carriers, child support collections and other 
miscellaneous accounts. 

E. Budgetary Process 

Budgetary amounts shown in the Required 

Supplementary Information and Combining and 

Individual Fund Statements and Schedules 

Sections represent the total of the original budgeted 

amounts and all supplemental appropriations. The 


82 Commonwealth of Virginia 




Commonwealth's budget is prepared principally on 
a cash basis and represents appropriations as 
authorized by the General Assembly. Unexpended 
appropriations at the end of the fiscal year generally 
lapse. However, they may be reappropriated for 
expenditure in the following fiscal year. The 
Governor, as required by the Code of Virginia, 
submits a budget composed of all proposed 
expenditures for the Commonwealth, and of 
estimated revenues and borrowing for a biennium, 
to the General Assembly. Budgets are adopted for 
the General and Special Revenue Funds, except 
for the Literary Fund (major special revenue). 
Formal budgetary integration is not employed for 
the Capital Projects (nonmajor governmental), Debt 
Service (nonmajor governmental), Permanent 
Funds (nonmajor governmental), and the Literary 
(major special revenue) Funds because effective 
budgetary control is alternatively achieved through 
the General Fund and the remaining Special 
Revenue Funds. 

The budget is prepared on a biennial basis; 
however, the budgets of the General and Special 
Revenue Funds contain separate appropriations for 
each year within the biennial budget, as approved 
by the General Assembly and signed into law by 
the Governor. For management control purposes, 
the budget is controlled at the program level. The 
Governor may transfer an appropriation within a 
state agency or from one state agency to another, 
provided that total fund appropriations, as 
contained within the budget, are not exceeded. 
Increases in General Fund appropriations must be 
approved by the General Assembly. 

Appropriations for programs funded from Special 
Revenue Funds may allow expenditures in excess 
of the original appropriations to the extent that 
revenues of the funds exceed original budget 
estimates and such additional expenditures are 
approved by the Governor through supplemental 
appropriations. 

F. Cash, Cash Equivalents, Investments, and 
Derivatives 

Cash 

In order to maximize the Commonwealth's earning 
potential, the majority of the primary government's 
cash balances are pooled together in the general 
account for investment purposes. The amounts 
required for operations are liquidated as needed. 
Since all amounts not required for operations are 
held in investment securities, it is possible that the 
cash balances could be negative due to timing 
differences in liquidating the investments. 

As of June 30, 2015, the General Fund had a 
negative cash balance of $3.9 billion. In order to 
properly reflect the general account position, this 
negative cash balance has been eliminated in the 
accompanying statements and offset against the 
primary government's cash equivalents and 
investments (see Note 6). 


Cash Equivalents 

Cash equivalents are investments with an original 
maturity of 90 days or less. 

Investments 

Investments are principally comprised of monies 
held by component units, Pension and Other 
Employee Benefit Trust Funds, and monies held by 
the State Treasurer in both the general account and 
other fiduciary accounts. 

Governmental and proprietary funds, both primary 
government and component units, report 
investments in money market and in the 
Commonwealth sponsored investment pools at 
amortized cost which approximates fair value. All 
other investments are reported at fair value, in 
accordance with GASB Statement No. 31, 
Accounting and Financial Reporting for Certain 
Investments and for External Investment Pools. 

Investments administered by the Virginia Retire¬ 
ment System (the System) are reported at fair 
value. The cost of investments sold is the average 
cost of the aggregate holding of the specific 
investment sold. Investments in affiliated 
organizations are accounted for on the equity 
method of accounting and the System’s share of 
their earnings (losses) for the period is included in 
investment income using the equity method. 

Investments of higher education institutions 
(nonmajor component units) are reported at fair 
value, except for money market investments and 
investments in the Commonwealth sponsored 
investment pools, which are reported at amortized 
cost. 

Derivatives 

Derivative instruments are financial contracts 
whose values depend on the values of one or more 
underlying assets, reference rates, or financial 
indexes (see Note 14). 

G. Receivables 

Receivables in the governmental funds consist 
primarily of the accrual of taxes, as well as 
receivables of the primary government's Medicaid 
program. Receivables in the proprietary funds 
consist primarily of tuition contribution receivables 
and unemployment compensation. Receivables of 
fiduciary funds are primarily the accrual of security 
transactions in the Pension and Other Employee 
Benefit Trust Funds. Receivables of the 
component units consist primarily of mortgage 
receivables, loan receivables, patient receivables, 
and student receivables. Receivables are recorded 
net of allowances for doubtful accounts (see 
Note 7). 


Commonwealth of Virginia 83 




H. Contributions Receivable, Net 

Contributions Receivable reported by the 
foundations (component units) represents pledges 
or unconditional promises to give that have been 
discounted (see Note 8). 

I. Internal Balances 

Interfund receivables and payables have been 
eliminated from the Statement of Net Position, 
except for the residual amounts due between 
governmental and business-type activities (see 
Note 9). 

J. Inventory 

Inventories consist of materials and supplies and 
are reported as expenditures when consumed. 
These assets are classified as nonspendable fund 
balance. Inventories exceeding $1.0 million of the 
General and the Special Revenue Funds are 
maintained at cost using the first-in, first-out (FIFO) 
methodology, except for the following: 

• Department of State Police (VSP) 

• Virginia Department of Transportation (VDOT) 

VSP inventories are recorded in the General 
(major) and Other Special Revenue (nonmajor) 
Funds using the average cost methodology and are 
maintained at cost. VDOT inventories are recorded 
in the Commonwealth Transportation Fund (major 
special revenue) using the FIFO and average cost 
methodologies and are maintained at either cost or 
average cost. 

In addition to inventories maintained as stated 
above, the following agencies reported donated 
inventory balances on hand at June 30, 2015: 

• Department of Health (VDH) 

• Department of Corrections (VADOC) 

• Department of Behavioral Health and 

Developmental Services (DBHDS) 

• Department of Juvenile Justice (DJJ) 

Inventories maintained by the Virginia Museum of 
Fine Arts (nonmajor enterprise fund), the Science 
Museum of Virginia (nonmajor enterprise fund), and 
the Consolidated Laboratory (nonmajor enterprise 
fund) are stated at cost using FIFO. 

Inventories maintained by the Department of 
Alcoholic Beverage Control (nonmajor enterprise 
fund) are stated at average cost using FIFO. 

Inventories maintained by the Virginia Lottery 
(major enterprise fund) and the Virginia Industries 
for the Blind (nonmajor enterprise fund) are stated 
at cost using the average cost methodology. 

Inventories maintained by Correctional Enterprises 
(internal service fund) are stated at the lower of 
cost or market using FIFO. Inventories maintained 


by the internal service funds except for Correctional 
Enterprises are stated at cost using FIFO. 

Institutions of higher education (nonmajor 
component units) use several methods for inventory 
valuations, including cost using FIFO, the lower of 
cost or market using FIFO, or weighted average 
methods. Inventories maintained by the Virginia 
Port Authority (nonmajor component unit), the 
Hampton Roads Sanitation District Commission 
(nonmajor component unit), and the Danville 
Science Center (nonmajor component unit) are 
reported using the moving average unit cost 
methodology. Inventories at the gift shop run by 
the Library of Virginia Foundation (nonmajor 
component unit) are stated at lower of cost or 
market using FIFO. 

K. Prepaid Items 

Prepaid assets for rent, insurance, and similar 
items are recognized when purchased and 
expensed when used. 

L. Interfund Loans Receivable/Payable 

Loans Receivable/Payable represents working 
capital advances from one fund to another (see 
Note 9). 

M. Other Assets 

Other Assets include those balances of a 
miscellaneous nature that are not specifically 
classified elsewhere (see Note 10). 

N. Capital Assets 

Capital assets of governmental funds are recorded 
as expenditures at the time of purchase and 
capitalized in the governmental activities column of 
the Government-wide Statement of Net Position. 
Capital assets of the other funds and component 
units are capitalized in the fund in which they are 
utilized. All depreciable capital assets are 
depreciated on the straight-line basis over their 
useful lives (see Note 12). 

Capital assets are stated at historical cost or, in 
some instances, estimated historical cost. Donated 
capital assets from entities external to the reporting 
entity are stated at fair market value at the time of 
donation. Asset transfers or donations from within 
the reporting entity are recorded at the carrying 
value of the transferring entity as required by GASB 
Statement No. 48, Sales and Pledges of 
Receivables and Future Revenues and Intra-Entity 
Transfers of Assets and Future Revenues. The 
primary government capitalizes all equipment that 
has a cost or value greater than $50,000 and 
expected useful life of greater than two years. The 
primary government capitalizes all land, water 
rights/easements, buildings, infrastructure, and 
software that have a cost or value greater than 
$100,000 and an expected useful life of greater 
than two years. Selected agencies, business-type 
entities, and component units utilize a capitalization 
limit lower or higher than the primary government’s 


84 Commonwealth of Virginia 




established thresholds for various reasons. 
Accordingly, reported capital assets may include 
some items that cost less than those thresholds. 
Infrastructure, including highways, bridges, and 
rights-of-way, is capitalized using the historical 
approach and includes any assets acquired prior to 
fiscal year 1980. 

The primary government's capitalization policy 
regarding works of art/historical treasures is that 
capitalization is encouraged, but not required, for 
works of art/historical treasures that meet the 
following conditions: 

• The collection is held for public exhibition, 
education, or research in furtherance of public 
service, rather than financial gain; 

• The collection is protected, kept 
unencumbered, cared for and preserved; and, 

• The collection is subject to an organizational 
policy that requires the proceeds from sales of 
collection items to be used to acquire other 
items for the collection. 

The primary government capitalizes construction-in¬ 
progress when project expenditures, including 
construction of intangible assets, exceed $100,000. 
Interest incurred during construction is not 
capitalized in governmental funds. Interest incurred 
during the construction of proprietary fund assets is 
included in the capitalized value of the asset. The 
total interest cost incurred during the fiscal year 
was $15.1 million. None of the interest cost incurred 
this fiscal year was capitalized. 

Expenditures are classified as construction-in¬ 
progress if: 

(1) They extend the asset life, improve 
productivity, or improve the quality of service; 
and, 

(2) They fall into the planning, acquisition, 
construction, improvement, renovation, repair, 
replacement, relocation, or demolition phase of 
the asset life. 

The estimated lives of capital assets are as follows: 



Years 

Buildings 

10-75 

Equipment 

2-50 

Infrastructure 

5-50 

Software 

5-35 


Selected agencies, business-type entities, and 
component units may utilize estimated lives and 
policies that differ from the above for various 
reasons. 

O. Deferred Outflows of Resources 

Deferred outflows of resources are a consumption 
of assets by the government that is applicable to a 
future reporting period. Deferred outflows have a 
natural debit balance and, therefore increase net 


position similar to assets (see Notes 13, 14, and 
15). 

P. Accounts Payable 

Accounts payable represent amounts, including 
salaries and wages, owed for goods and services 
received prior to year-end. In accordance with 
GASB Statement No. 33, Accounting and Financial 
Reporting for Nonexchange Transactions, accounts 
payable also includes payments for nonexchange 
transactions that met eligibility requirements prior to 
fiscal year-end (see Note 24). 

Q. Unearned Revenue 

Unearned revenue represents monies received or 
revenues accrued but not earned as of June 30, 
2015. The majority of unearned revenue is reported 
by higher education institutions (nonmajor 
component units), where it is primarily composed of 
revenue for student tuition accrued in advance of 
the semester and advance payments on grants and 
contracts. In the special revenue funds, unearned 
revenue is composed primarily of prepaid toll 
revenue and contributions from localities and 
private sectors for highway construction projects 
recorded in the Commonwealth Transportation 
Special Revenue Fund (major governmental). In 
the enterprise funds, a majority of unearned 
revenue represents online ticket monies received 
by the Virginia Lottery (major enterprise) for which 
corresponding drawings have not been held. 

Unearned revenue in the internal service funds 
primarily represents unearned premiums in the Risk 
Management Fund; the transfer and purchase of 
assets for transition agencies, as well as advanced 
customer receipts in the Virginia Information 
Technologies Agency Fund; and prepaid rent and 
work orders in the Property Management Fund. 

Unearned revenues in the other component units 
consist primarily of fees related to various activities. 

R. Unearned Taxes 

Unearned taxes represent income taxes related to 
the period January through June 2015. This amount 
is the estimate to be refunded (overpayments by 
taxpayers) reduced by the estimate to be received 
(underpayments from taxpayers) that will be 
finalized when income tax returns are filed in 
subsequent years. Individual income tax estimated 
overpayments total $928.1 million and estimated 
underpayments total $863.6 million. This results in 
unearned taxes of $64.5 million. 

Corporate income tax estimated overpayments total 
$45.4 million and estimated underpayments total 
$36.7 million. This results in unearned taxes of 
$8.7 million. 

S. Obligations Under Securities Lending Program 

In accordance with GASB Statement No. 28, 
Accounting and Financial Reporting for Securities 
Lending Transactions, liabilities resulting from these 


Commonwealth of Virginia 85 




transactions have been recorded as obligations received, are reported as debt service expenditures 

under securities lending transactions. (see Note 26). 

T. Other Liabilities W. Deferred Inflows of Resources 


Other liabilities represent amounts owed for various 
governmental and proprietary activities. Some of 
these amounts will be paid shortly after fiscal year- 
end (see Note 25). 

U. Claims Payable 

Claims payable, reported in the proprietary funds of 
the primary government, represent both health and 
liability insurance claims payable at June 30, 2015. 
This includes both actual claims submitted, as well 
as actuarially determined claims incurred but not 
reported. Claims relating to the primary 
government’s liability insurance programs are 
reported in the Risk Management - internal service 
fund and the Risk Management - nonmajor 
enterprise fund. Also, health insurance claims are 
reported in the Health Care - internal service fund 
and the Local Choice Health Care - nonmajor 
enterprise fund (see Notes 23.A. and 23.B.). 
Claims payable reported by the Virginia 
Commonwealth University Health System Authority 
(a blended component unit of the Virginia 
Commonwealth University - nonmajor component 
unit) represents estimated malpractice, workers’ 
compensation, and medical claims payable 
amounts. 

V. Long-term Liabilities 

In the government-wide financial statements, long¬ 
term debt and other long-term obligations are 
reported as liabilities in the applicable governmental 
activities or business-type activities column. The 
governmental fund statements reflect the portion of 
long-term liabilities that will be paid from 
expendable resources that represent payments to 
employees for separations that occurred prior to 
June 30. The proprietary fund statements and 
discrete component unit statements reflect total 
long-term liabilities and distinguish between those 
portions payable within one year and those payable 
in future years (see Note 26). 

Bond premiums and discounts are amortized over 
the life of the bond. Bonds payable are reported 
net of the applicable bond premium or discount. 
Bond issuance costs, excluding prepaid insurance, 
are expensed. 

Expenditures for principal and interest payments for 
governmental fund general obligation bonds and 
revenue bonds are recognized in the Debt Service 
Fund (nonmajor) when due. In these fund 
statements, governmental fund types recognize 
bond premiums and discounts, as well as bond 
issuance costs, during the current period. The face 
amount of debt issued is reported as other 
financing sources. Premiums received on debt 
issuances are reported as other financing sources 
while discounts on debt issuance are reported as 
other financing uses. Issuance costs, whether or 
not withheld from the actual debt proceeds 


Deferred inflows of resources are an acquisition of 
assets by the government that is applicable to a 
future reporting period. Deferred inflows have a 
natural credit balance and, therefore decrease net 
position similar to liabilities (see Notes 13, 14, 15, 
and 37). 

X. Nonspendable Fund Balances 

Nonspendable fund balances indicate that portion 
of fund balance that cannot be spent because it is 
either not in spendable form or is legally or 
contractually required to be maintained intact. 

Y. Restricted Fund Balances 

Restricted fund balances are amounts that have 
constraints placed on the use of resources that are 
either (a) externally imposed by creditors (such as 
through debt covenants), grantors, contributors, or 
laws or regulations of other governments, or (b) 
imposed by law through constitutional provisions or 
enabling legislation. 

Z. Committed Fund Balances 

Committed fund balances are amounts that have 
constraints placed on the use of resources that are 
imposed by the formal action of the government’s 
highest level of decision-making authority through 
legislative action. The distinction between 
restricted and committed fund balances is the 
source and strength of the constraints placed on 
them. The highest level of decision authority for the 
Commonwealth is the General Assembly and the 
Governor. 

AA. Assigned Fund Balances 

Assigned fund balances are amounts that are 
constrained by the government’s intent to be used 
for specific purposes, but are neither restricted nor 
committed. Assignments are identified by 
Commonwealth management pursuant to the 
delegation of authority granted by the General 
Assembly and Governor specified in the 
Appropriation Act. 

BB. Unassigned Fund Balances 

Unassigned fund balance is the amount of fund 
balance that has not been assigned to other funds 
and has not been restricted, committed or assigned 
to specific purposes with the General Fund. 
Additionally, accrued liabilities exceed accrued 
assets on the modified accrual basis for the 
Commonwealth Transportation Fund (major special 
revenue) and Literary Fund (major special revenue) 
by $22.2 million and $37.5 million, respectively. As 
there are no assigned balances in these funds to 
offset the negative fund balance restricted for 
specific purposes, these amounts are reported as 
Unassigned Fund Balance. 


86 Commonwealth of Virginia 




CC. Cash Management Improvement Act 


2. RESTATEMENT OF BEGINNING BALANCES 


Included in Amounts Due to Other Governments is 
the Commonwealth’s Cash Management 
Improvement Act (CMIA) interest liability to the 
federal government, which is calculated in 
accordance with the interest calculation and 
exchange provisions of the Federal Cash 
Management Improvement Act of 1990. The 
Commonwealth’s interest liability is subject to 
review and final confirmation by the Bureau of the 
Fiscal Service (BFS) of the U.S. Treasury. If 
required, the payment is to be made on March 31 of 
the following year. Payment will be made from a 
sum sufficient appropriation authorized for this 
purpose by the Appropriation Act. The CMIA 
interest rate of exchange is based by law on the 
average of the bond equivalent rates of 13-week 
Treasury Bills auctioned during the annual reporting 
period as calculated by BFS. There was no 
payment required as of June 30, 2015. 

DD. Investment Income 

In accordance with GASB Statement No. 31, 
Accounting and Financial Reporting for Certain 
Investments and for External Investment Pools, all 
investment income reported in the accompanying 
financial statements include changes in the fair 
value of investments and the amount reported may 
be negative. Additionally, the Commonwealth’s 
policy is to record all unrealized gains or losses for 
the State Treasurer’s Portfolio in the General Fund. 

EE. Intrafund Eliminations 

Eliminations have been incorporated into the report 
to eliminate intrafund transactions within the related 
fund type. These eliminations prevent 
overstatement of financial activity. 

FF. Interfund Activity 

Generally, the effect of interfund activity has been 
eliminated from the government-wide statements. 
Exceptions to this rule are 1) activities between 
funds reported as governmental activities and funds 
reported as business-type activities, and 2) 
activities between funds that are reported in 
different functional categories in either the 
governmental or business-type activities column. 
Elimination of these activities would distort the 
direct costs and program revenues for the 
functions. 


The government-wide beginning balance restatements 

resulted from the following: 

Government-wide Activities 

• Governmental Activities 

The Governmental Activities were restated for the 

following: 

• The Commonwealth implemented GASB 
Statement No. 68, Accounting and Financial 
Reporting for Pensions - an amendment of 
GASB Statement No. 27, and GASB Statement 
No. 71, Pension Transition for Contributions 
Made Subsequent to the Measurement Date - 
an amendment of GASB Statement No. 68, 
effective for the fiscal year ended June 30, 
2015. This implementation resulted in 
restatements for the difference between the 
beginning net pension liability less the 
beginning deferred outflows of resources for 
fiscal year 2014 employer contributions and the 
prior year’s net pension obligation under the 
previous GASB Statement No. 27. 
Accordingly, the Governmental Activities were 
restated by $2.4 billion. 

• Capital Asset balances were restated by $9.5 
million due to errors that resulted in an 
understatement of previous balances. 

• The Commonwealth Transportation (major 
special revenue) balances were restated by 
$6.5 million due to errors that resulted in an 
overstatement of prior year liabilities. 

• Business-type Activities 

• As a result of the implementation of GASB 
Statement No. 68 and GASB Statement No. 71 
discussed previously, Virginia Lottery (major), 
Virginia College Savings Plan (major), and 
numerous nonmajor enterprise funds have 
restated beginning balances by $15.9 million, 
$5.8 million, and $55.5 million, respectively. 

• The Wireless E-911 Service Board (nonmajor 
enterprise) beginning balance was restated by 
$8.2 million due to errors attributable primarily 
to the overstatement of receivables and the 
understatement of liabilities. 


In the fund financial statements, transfers represent 
the movement of resources between funds. For 
example, transfers are recorded when a fund 
receives revenue and subsequently disburses the 
resources to another fund for expenditure. 


Commonwealth of Virginia 87 




Fund Statements 

The fund statement beginning balance restatements 

resulted from the following: 

• The Commonwealth Transportation (major special 
revenue) balances were restated by $6.5 million 
due to errors that resulted in an overstatement of 
prior year liabilities as discussed previously. 

• As a result of the implementation of GASB 
Statement No. 68 and GASB Statement No. 71 
discussed previously, the following funds have 
been restated: 

o Virginia Lottery (major), Virginia College 
Savings Plan (major), and numerous nonmajor 
enterprise funds have restated beginning 
balances by $15.9 million, $5.8 million, and 
$55.5 million, respectively, 
o Internal Service funds have been restated by 
$41.4 million. 

o The Private Purpose Trust Funds have been 
restated by $2.0 million. 

• The Wireless E-911 Service Board (nonmajor 
enterprise) beginning balance was restated by $8.2 
million due to errors attributable primarily to the 
overstatement of receivables and the 
understatement of liabilities as discussed 
previously. 


Component Units 

The government-wide and fund statements were 

restated for the following. 

• As a result of the implementation of GASB 
Statement No. 68 and GASB Statement No. 71 
discussed previously, Virginia Resources Authority 
(major) and nonmajor component units restated 
balances by $317,016 and $1.7 billion, respectively. 

• The Virginia College Building Authority (major) has 
restated balances by $8.5 million to reflect the 
removal of unamortized premiums related to bonds 
that matured in prior years. 

• The University of Virginia (nonmajor) has restated 
balances by $121.5 million for the inclusion of The 
College Foundation of the University of Virginia. 

• The Virginia Commonwealth University Health 
System Authority (blended component unit of 
Virginia Commonwealth University - nonmajor) has 
restated balances by $46.1 million for the 
Community Memorial Hospital affiliation. 

• The nonmajor component unit balance has been 
restated by $8.6 million due to contractual 
modifications in January 2015 resulting in the 
removal of the Virginia Horse Center Foundation 
from the Commonwealth’s reporting entity. 

• The Virginia Port Authority (nonmajor) has restated 
balances by $28.7 million due to errors resulting in 
the understatement of capitalized interest. 

• The Hampton Roads Sanitation District 
Commission (nonmajor) has restated balances by 
$25.1 million due to errors resulting in the 
understatement of inventory. 


88 Commonwealth of Virginia 




(Dollars in Thousands) 


Beginning Balance Restatement 


Government-wide Activities: 

Primary Government: 

Governmental Activities 
Business-type Activities 
Total Primary Government 

Component Units 

Fund Statements - Governmental Funds 

Major Governmental Funds: 

General 

Special Revenue Funds: 

Commonwealth Transportation 

Federal Trust 

Literary 

Nonmajor Governmental Funds 

Total Governmental Funds 

Fund Statements - Proprietary Funds 

Major Enterprise Funds: 

Virginia Lottery 

Virginia College Savings Ran 

Unemployment Compensation 

Nonmajor Enterprise Funds 

Total Enterprise Funds 

Internal Service 

Fiduciary Funds 

Private Purpose Funds 

Pension and Other Employee Benefit Trust Funds 
Investment Trust Funds 

Fund Statements - Component Units: 

Virginia Housing Development Authority 
Virginia Public School Authority 
Virginia Resources Authority 
Virginia College Building Authority 
Nonmajor Component Units 
Total Component Units 


Balance 



Correction 

Balance 

as of 

GASBS No. 68 

Change in 

of Prior 

June 30, 

June 30, 

Pension-Related 

Reporting 

Year 

2014 

2014 

Items 

Entity 

Errors 

as restated 


$ 

20,962,156 

$ 

(2,409,435) 

$ 

- $ 

16,021 

$ 

18,568,742 


1,161,822 


(77,159) 


- 

(8,230) 


1,076,433 

JL 

22,123,978 

£ 

(2,486,594) 

$ 

- $ 

7,791 

JL 

19,645,175 

JL 

24,425,826 

$ 

(1,749,089) 

$ 

158,973 $ 

62,319 

JL 

22,898,029 


$ 

629,637 

$ 

" 

$ 

“ 

$ 

- 

$ 

629,637 


2,264,744 


- 


_ 


6,491 


2,271,235 


135,262 


- 


- 


- 


135,262 


13,473 


- 


- 


- 


13,473 


864,927 


- 


_ 


- 


864,927 

$ 

3,908,043 

$ 

- 

$ 

- 

$ 

6,491 

$ 

3,914,534 


$ 

(13,850) 

$ 

(15,893) 

$ 

- $ 

- 

$ 

(29,743) 


518,243 


(5,802) 


- 

- 


512,441 


586,073 


- 


- 

- 


586,073 


69,012 


(55,464) 


- 

(8,230) 


5,318 

$ 

1,159,478 

$ 

(77,159) 

$ 

- $ 

(8,230) 

$ 

1,074,089 

$ 

(465,192) 

$ 

(41,356) 

$ 

- $ 

- 

$ 

(506,548) 

JL 

3,407,620 

_$_ 

(1,961) 

$ 

__ J_ 

- 

JL 

3,405,659 

JL 

66,175,874 

_$_ 

- 

$ 

__ _$_ 

- 

JL 

66,175,874 

$ 

2,727,251 

$ 

_ 

$ 

- $ 

_ 

$ 

2,727,251 


$ 2,643,591 

$ 

£ 

- 

$ 

- 

£ 2,643,591 

(34,612) 


- 

- 


- 

(34,612) 

1,437,856 


317 

- 


- 

1,438,173 

(3,156,748) 


- 

- 


8,516 

(3,148,232) 

23,535,739 


(1,749,406) 

158,973 


53,803 

21,999,109 

$ 24,425,826 

£ 

(1,749,089) £ 

158,973 

$ 

62,319 

£ 22,898,029 


Commonwealth of Virginia 89 



























3. NET POSITION/FUND BALANCE CLASSIFICATIONS 
Fund Balance 

GASB Statement No. 54, Fund Balance Reporting and 
Governmental Fund Type Definitions , improves the 
reporting of fund balance so that classifications are 
more easily understood and can be applied consistently 
between information reported in the government-wide 
financial statements and the governmental fund financial 
statements. The governmental fund balance 
classifications defined in GASB Statement No. 54 are: 
Nonspendable, Restricted, Committed, Assigned, and 
Unassigned. 

Nonspendable fund balance includes inventories, 
prepaid items, and the principal of a permanent fund. 
These funds are not available for expenditure in the 
current or following period. 

Restricted fund balances include amounts that have 
constraints placed on the use of resources by the 
Constitution of Virginia or a party external to the 
Commonwealth. 

Committed fund balances include amounts that can only 
be used for specific purposes pursuant to constraints 
imposed by formal action of the General Assembly and 
Governor through enacted legislation. The distinction 
between restricted and committed fund balances is the 
source and strength of the constraints placed on them. 


Assigned fund balances are those that the government 
intends to use for a specific purpose, but for which the 
use is not legislatively mandated. The assignments are 
identified by Commonwealth management pursuant to 
the delegation of authority granted by the General 
Assembly and Governor specified in the Appropriation 
Act. The following schedule includes committed and 
assigned amounts that share the same purpose and 
title. The distinction between these classifications 
results from whether there is a statutory restriction on 
certain amounts contained within the fund. 

Unassigned fund balance for the General Fund (major) 
is the residual classification. A negative amount 
indicates that restricted and committed amounts exceed 
the available modified accrual basis fund balance. 
Unassigned fund balance for the Commonwealth 
Transportation Fund (major special revenue) and 
Literary Fund (major special revenue) indicates that the 
amounts restricted for specific purposes exceeds the 
modified accrual basis fund balance available for these 
specific purposes. 

The governmental fund balance classifications and 
amounts at June 30, 2015, are shown in the following 
table. 


90 Commonwealth of Virginia 




Governmental Fund Balance Classifications 


(Dollars in Thousands) 



Commonwealth 


Federal 


Nonmajor 




General Fund 

Transportation 


Trust 

Literary 

Governmental 


Total 

Nonspendable 










Inventory 

$ 41,838 

$ 

76,563 

$ 

15,791 

$ 

$ 5,254 

$ 

139,446 

Prepaid Items 

78,209 


8,983 


1,420 

- 

19,741 


108,353 

Permanent Funds 

- 


- 


- 

- 

34,725 


34,725 

Total Nonspendable 

120,047 


85,546 


17,211 

- 

59,720 


282,524 

Restricted 










Agriculture and Forestry 

- 


- 


- 

- 

1,573 


1,573 

Capital Projects/Construction/Capital Acquisition 

- 


- 


- 

- 

288,127 


288,127 

Debt Service 

Economic and Technological 

■ 


' 


■ 

■ 

44,729 


44,729 

Development 

- 


- 


- 

- 

12 


12 

Educational and Training Programs 

Environmental Quality and Natural 

■ 


■ 


■ 

■ 

10,522 


10,522 

Resource Preservation 

- 


- 


- 

- 

16,704 


16,704 

Gifts and Grants 

Government Operations: 

- 


- 


98,225 

- 

2,211 


100,436 

Legislative Services 

- 


- 


- 

- 

7 


7 

Administrative Services 

- 


- 


- 

- 

3,304 


3,304 

Health and Public Safety 

- 


- 


- 

- 

83,023 


83,023 

Lottery Proceeds Fund 

7,063 


- 


- 

- 

- 


7,063 

Revenue Stabilization Fund 

1,073,289 


- 


- 

- 

- 


1,073,289 

Transportation Activities 

- 


544,980 


- 

- 

- 


544,980 

Virginia Water Supply Assistance Grant Fund 

5,634 


- 


- 

- 

- 


5,634 

Total Restricted 

1,085,986 


544,980 


98,225 

- 

450,212 


2,179,403 

Committed 










Agriculture and Forestry 

Amount Required for Mandatory 

66 


- 


- 

- 

23,512 


23,578 

Reappropriation 

Amount Required for Reappropriation 

58,543 


" 


■ 

■ 

■ 


58,543 

of 2015 Unexpended Balances 
for Capital Outlay 

21,487 


_ 


_ 

_ 

_ 


21,487 

Capital Rojects/Construction/Capital Acquisition 

543 


- 


- 

- 

573 


1,116 

Central Capital Panning Fund 

13,790 


- 


- 

- 

- 


13,790 

Commonwealth's Development Opportunity Fund 

23,543 


- 


- 

- 

- 


23,543 

Communications Sales and Use Tax 

2,157 


- 


- 

- 

- 


2,157 

Contract and Debt Administration 

- 


10,285 


- 

- 

1,119 


11,404 

Economic and Technological 










Development 

32,521 


- 


- 

- 

50,556 


83,077 

Educational and Training Programs 

Environmental Quality and Natural 

624 


1,574 


■ 

■ 

6,797 


8,995 

Resource Preservation 

3,800 


- 


- 

- 

102,257 


106,057 

Federal Action Contingency Trust Fund 
Government Operations: 

437 


- 


- 

- 

- 


437 

Legislative Services 

- 


- 


- 

- 

180 


180 

Administrative Services 

84 


- 


- 

- 

80,585 


80,669 

Health and Public Safety 

9,095 


3,375 


- 

- 

177,441 


189,911 

Natural Disaster Sum Sufficient 

24,110 


- 


- 

- 

- 


24,110 

Regulatory Oversight 

- 


- 


- 

- 

131,096 


131,096 

Transportation Activities 

- 


1,647,529 


- 

- 

7,061 


1,654,590 

Virginia Health Care Fund 

10,390 


- 


- 

- 

- 


10,390 

Virginia Water Quality Improvement Fund 

94,548 


- 


- 

- 

- 


94,548 

Total Committed 

295,738 


1,662,763 


- 

- 

581,177 


2,539,678 

Assigned 










Agriculture and Forestry 

- 


- 


- 

- 

114 


114 

Economic and Technological Development 

- 


- 


- 

- 

1,750 


1,750 

Educational and Training Programs 

Environmental Quality and Natural Resource 

' 


■ 


■ 

' 

6,734 


6,734 

Preservation 

- 


- 


- 

- 

8,325 


8,325 

Health and Public Safety 

- 


- 


- 

- 

11,923 


11,923 

Total Assigned 

- 


- 


- 

- 

28,846 


28,846 

Unassigned 

(653,415) 


(22,182) 



(37,478) 



(713,075) 

Total Fund Balance 

$ 848,356 

$ 

2,271,107 


115,436 

$ (37,478) 

$ 1,119,955 

$ 

4,317,376 


Commonwealth of Virginia 91 
















4. DEFICIT FUND BALANCES/NET POSITION 

The Literary Fund (major special revenue) ended the 
year with a deficit fund balance of $37.5 million. The 
deficit was the result of current year expenditures for 
teacher retirement and education technology loans 
exceeding revenue, coupled with the fund accruing 
loans payable to the Virginia Public School Authority 
(major component unit) that exceeded the accrued 
assets on the modified accrual basis. 

The Virginia Lottery (major enterprise fund), the 
Department of Alcoholic Beverage Control (nonmajor 
enterprise fund), the Department of General Services’ 
Consolidated Laboratory Services Fund (nonmajor 
enterprise fund), the Department of Environmental 
Quality’s Title V Air Pollution Permit Fund (nonmajor 
enterprise fund), and the Payroll Service Bureau 
(internal service fund) ended the year with deficit net 
positions of $30.4 million, $84.8 million, $146,069, $8.3 
million, and $2.2 million, respectively. This was solely 
attributable to the net pension liability resulting from 
GASB Statement No. 68, Accounting and Financial 
Reporting for Pensions - an amendment of GASB 
Statement No. 27, and GASB Statement No. 71, 
Pension Transition for Contributions Made Subsequent 
to the Measurement Date - an amendment of GASB 
Statement No. 68, and the net other postemployment 
benefits (OPEB) obligation resulting from GASB 
Statement No. 45, Accounting and Financial Reporting 
by Employers for Postemployment Benefits Other Than 
Pensions. 

The Risk Management Fund (nonmajor enterprise fund) 
ended the year with a deficit net position balance of 
$13.8 million. The deficit was a result of increasing 
claims liability for constitutional officers’ programs. 

The Virginia Information Technologies Agency (internal 
service fund) ended the year with a deficit net position 
balance of $36.7 million. The deficit was a result of 
transfers to the General Fund mandated by the 
Appropriation Act, operating expenses exceeding 
revenues in previous years, and noncurrent liabilities 
related to net pension liabilities and other 
postemployment benefit obligations. 

The Enterprise Application Fund (internal service fund) 
ended the year with a deficit net position balance of $4.7 
million. This deficit was the result of high capital 
expenses and significant expenses relating to Phase III 
of the Cardinal project which were excluded from billing, 
coupled with noncurrent liabilities related to net pension 
liabilities and other postemployment benefit obligations. 

The Property Management Fund (internal service fund) 
ended the year with a deficit net position balance of 
$25.8 million. This deficit was the result of the purchase 
of a leasehold interest in a state-owned building in fiscal 
year 2006. Also, the Property Management Fund 
incurred additional capital lease liabilities due to 
transfers of leases from other state agencies in fiscal 
year 2009. Additionally, in fiscal year 2012, the 
Property Management Fund entered into three energy 
leases where the asset is reported in the governmental 
fund and the liability is recorded in the internal service 
fund. Further, there are noncurrent liabilities related to 


net pension liabilities and other postemployment benefit 
obligations. 

The Risk Management Fund (internal service fund) 
ended the year with a deficit net position balance of 
$521.4 million. The deficit was the result of the 
Worker’s Compensation Program having estimated 
claims payable exceeding the available equity in the 
fund. Claims are paid on a pay-as-you-go basis. To the 
extent that claims exceed current resources, they will 
ultimately become a liability of the fund from which the 
claim originated. 

The Virginia Public School Authority (major component 
unit) ended the year with a deficit net position balance of 
$31.8 million. This deficit is the result of an accrued 
credit against future debt service payments on Local 
School Bonds due from the localities subsequent to 
June 30. 

The Virginia College Building Authority (major 
component unit) ended the year with a deficit net 
position balance of $3.5 billion. This deficit occurs 
because the Authority issued bonds for the 21st Century 
College and Equipment programs subject to future 
appropriations from the General Fund of the 
Commonwealth without any other security. These future 
appropriations are not included as assets of the 
Authority. 

The Southern Virginia Higher Education Center 
(nonmajor component unit) ended the year with a deficit 
net position balance of $547,614. This was solely 
attributable to the entries for the net pension liability 
resulting from GASB Statement No. 68, Accounting and 
Financial Reporting for Pensions - an amendment of 
GASB Statement No. 27, and GASB Statement No. 71, 
Pension Transition for Contributions Made Subsequent 
to the Measurement Date - an amendment of GASB 
Statement No. 68. 

The Virginia Economic Development Partnership 
(nonmajor component unit) ended the year with a deficit 
net position balance of $11.1 million. This deficit occurs 
because the partnership’s Statement of Net Position 
reflects $13.0 million in non-current liabilities related to 
compensated absences, net pension liabilities, and net 
other postemployment benefit obligation. The 
Partnership is funded mainly by state appropriations, 
which show current funding only. 

The Virginia Tourism Authority (nonmajor component 
unit) ended the year with a deficit net position balance of 
$2.4 million. This deficit occurs because the Authority’s 
Statement of Net Position reflects $7.3 million in non- 
current liabilities related to compensated absences, net 
pension liabilities, and net other postemployment benefit 
obligation. 

5. REVENUE STABILIZATION FUND 

In accordance with Article X, Section 8 of the 
Constitution of Virginia, the amount estimated as 
required for deposit to the Revenue Stabilization Fund 
must be appropriated for that purpose by the General 
Assembly. A deposit of $243.2 million was made during 
fiscal year 2015 as required by Section 2.2-1829 of the 
Code of Virginia, which includes the advance 


92 Commonwealth of Virginia 




reservation of $95.0 million provided in Chapter 2, 2014 
Acts of Assembly. Additionally, during fiscal year 2015, 
in accordance with the provisions of Article X, Section 8 
of the Constitution of Virginia and Section 2.2-1830 of 
the Code of Virginia, a withdrawal of $467.7 million was 
made from the fund. Further, Chapter 665, 2015 Acts of 
Assembly, authorizes an additional withdrawal 
estimated at $235.0 million from the fund during fiscal 
year 2016. 

Under the provisions of Article X, Section 8 of the 
Constitution of Virginia, a deposit of $605.6 million is 
required during fiscal year 2017 based on fiscal year 
2015 revenue collections. This required deposit is 
included as a restricted component of fund balance and 
includes the advance reservation of $129.5 million 
provided in Chapter 665, 2015 Acts of Assembly. 

Section 2.2-1829(b) of the Code of Virginia requires an 
additional deposit into the Fund when specific criteria 
have been met. No such deposit is required since the 
specified criteria were not met for fiscal year 2015. 

The Revenue Stabilization Fund has principal and 
interest on deposit of $467.7 million restricted as a part 
of General Fund balance. Pursuant to the constitutional 
amendment of Article X, Section 8, effective January 1, 
2011, the amount on deposit cannot exceed fifteen 
percent of the Commonwealth’s average annual tax 
revenues derived from taxes on income and retail sales 
for the preceding three fiscal years. As of June 30, 
2015, the Constitutional maximum is $2.4 billion. 


6. CASH, CASH EQUIVALENTS, AND INVESTMENTS 

At June 30, 2015, the carrying amount of cash for the 
primary government was $3.4 billion and the bank 
balance was $476.7 million. The carrying amount of 
cash for component units was $2.2 billion and the bank 
balance was $957.0 million. Cash equivalents are 
investments with an original maturity of 90 days or less. 
Cash and cash equivalents for foundations (component 
units) totaled $386.8 million as of year-end. A portion of 
this amount and some balances during the year 
exceeded Federal Deposit Insurance Corporation 
(FDIC) insurance coverage. Foundation investments are 
disclosed in the Interest Rate Risk section of this note. 

For purposes of this note, primary government includes 
governmental, business-type activities, and fiduciary 
funds. The deposits of the primary government and the 
component units, excluding foundations (component 
units), are secured in accordance with the provisions of 
the Virginia Security for Public Deposits Act, Section 
2.2-4400 of the Code of Virginia. The act requires any 
public depository that receives or holds public deposits 
to pledge collateral to the Treasury Board to cover 
public deposits in excess of Federal deposit insurance. 
The required collateral percentage is determined by the 
Treasury Board and ranges from 50.0 percent to 100.0 
percent for financial institutions choosing the pooled 
method of collateralization, and from 105.0 percent to 
130.0 percent for financial institutions choosing the 
dedicated method of collateralization. As stated in Note 
1.DD, unrealized gains or losses for the State 
Treasurer’s Portfolio are recorded in the General Fund. 


Certain deposits are held by trustees in accordance with 
the Trust Subsidiary Act, Section 6.2-1057 of the Code 
of Virginia. The act requires that cash held by trustees 
while awaiting investment or distribution is not to be 
used by an affiliate bank of the trustee in the conduct of 
its business unless the affiliate bank delivers securities 
to the trust department as collateral that is at least equal 
to the fair value of the trust funds held on deposit in 
excess of amounts insured by the FDIC. 

The Commonwealth is authorized, in accordance with 
the guidelines set forth in Section 2.2-4500 et seq. of 
the Code of Virginia, to invest public funds in the 
following: 

• U.S. Treasury and agency securities 

• Corporate debt securities 

• Asset-backed securities 

• Mortgage-backed securities 

• Municipal securities 

• AAA rated obligations of foreign governments 

• Bankers’ acceptances and bank notes 

• Negotiable certificates of deposit 

• Repurchase agreements 

• Money market funds 

Permitted investments include agency mortgage-backed 
securities, corporate or private label mortgage-backed 
securities, and asset-backed securities which by 
definition usually expose the investor to prepayment 
risk. Prepayment risk, or the prepayment option granted 
the borrower, can create uncertainty concerning cash 
flows, can affect the price of the security causing 
negative convexity, and can expose the investor to 
reinvestment risk. Similarly, many agency and corporate 
securities are callable after some predetermined date at 
a predetermined price. The call options in regular 
agency debentures and some corporate securities can 
be open ended and may significantly impact cash flows, 
security pricing, and reinvestment risks of these 
securities. 

At June 30, 2015, the State Treasurer held no security 
that was in default as to principal or interest. The State 
Treasurer, with the exception of securities lending and 
one security in one nonmajor component unit portfolio 
with a one-day (July 1, 2015) maturity, had no securities 
that were out of compliance with guidelines. 

Public funds held by the Commonwealth, public officers, 
municipal corporations, political subdivisions, and any 
other public body of the Commonwealth shall be held in 
trust for the citizens of the Commonwealth. Any 
investment of such funds pursuant to the provisions of 
this chapter shall be made solely in the interest of the 
citizens of the Commonwealth and with the care, skill, 
prudence, and diligence under the circumstances then 
prevailing that a prudent person acting in a like capacity 
and familiar with such matters would use in the conduct 
of an enterprise of a like character and with like aims. 

Certain investments held in trust by the State Treasurer 
in accordance with bond indentures and resolutions may 
have more restrictive investment policies. Investment 
policies of institutions of higher education (component 
units) are established by the institutions' governing 
boards. 


Commonwealth of Virginia 93 





The Board of Trustees of the Virginia Retirement 
System (the System) (part of primary government) has 
full power to invest and reinvest the trust funds in 
accordance with Section 51.1-124.30 of the Code of 
Virginia, as amended. This section requires the Board to 
discharge its duties solely in the interest of the 
beneficiaries and to invest the assets with the care, skill, 
prudence, and diligence under the circumstances then 
prevailing that a prudent person acting in a like capacity 
and familiar with such matters would use in the conduct 
of an enterprise of a like character and with like aims. 
The Board must also diversify such investments so as to 
minimize the risk of large losses unless under the 
circumstances it is clearly prudent not to do so. The 
System does not have investment policies that place 
specific restrictions on investments related to custodial 
risk, interest rate risk, credit risk, or foreign currency 
risk. The System investment portfolio is intended to be 
managed through diversification and prudent judgment, 
rather than through specific policy restrictions. 

The information presented for the external investment 
pool was obtained from audited financial statements. 
Copies of the Local Government Investment Pool 
(LGIP) report may be obtained by writing the 
Department of the Treasury, Post Office Box 1879, 
Richmond, Virginia 23218. Participation in this pool is 
voluntary. 

Custodial Risk 

Custodial credit risk is the risk that, in the event of the 
failure of the counterparty, the Commonwealth may not 
be able to recover the value of its investment or 
collateral securities that are in the possession of an 
outside party. 

Policies related to custodial credit risk pertaining to the 
Commonwealth’s securities lending program are found 
in the securities lending section of this note. 

As of June 30, 2015, the primary government had $2.1 
billion of cash equivalents and investments that were 
exposed to custodial risk as uninsured and 
uncollateralized. The majority of this amount, held by 
the System, consisted of various types of debt and 
equity securities that were held by counterparties’ trust 
departments or agents, but not in the System’s name. 
Common and preferred stocks represented $1.6 billion 
of the total. The remainder was for various types of debt 
securities. The component units had no cash 
equivalents and investments that were exposed to 
custodial risk as uninsured and uncollateralized. 

As of June 30, 2015, the investments of the Pension 
and Other Employee Benefit Trust Funds were 
approximately 80.7 percent of the primary government 
investments, and 99.9 percent of those were exposed to 
custodial risk. 


Interest Rate Risk 

Interest rate risk is the risk that changes in interest rates 
of debt investments will adversely affect the fair value of 
an investment. The Commonwealth has elected the 
Segmented Time Distribution method of disclosure. 

The State Treasurer’s guidelines limit the following 
maximum durations for any single security of the 
following investment types: 


Security Type Maximum Duration 

Corporate Security 15 years 

Asset-Backed Securities 5 years 

Sovereign Government 

Obligations (excluding U.S.) 5 years 

Negotiable Certificates of Deposit 

and Negotiable Bank Notes 5 years 


The State Treasurer’s guidelines further describe target 
durations for the overall general account portfolio of 1.7 
years. 

The System manages the risk within the portfolio using 
the effective duration or option-adjusted methodology. It 
is widely used in the management of fixed income 
portfolios in that it quantifies, to a much greater degree, 
the risk of interest rate changes. The methodology takes 
into account optionality on bonds and scales the risk of 
price changes on bonds depending upon the degree of 
change in rates and the slope of the yield curve. All of 
the System’s fixed income portfolios are managed in 
accordance with the System’s investment guidelines, 
most of which are specific as to the degree of interest 
rate risk that can be taken. 


94 Commonwealth of Virginia 




At June 30, 2015, the Commonwealth had the following investments and maturities: 


Primary Government Investments 

(Dollars in Thousands) 


Investment Maturities (in years) 


Investment Type 


Fair 


Less 






More 



Value 


Than 1 


1-5 


6-10 


Than 10 

Debt Securities 

U. S. Treasury and Agency Securities 

$ 

5,416,720 

$ 

554,148 

$ 

3,384,874 

$ 

941,967 

$ 

535,731 

Corporate Bonds and Notes 


13,825,977 


3,890,846 


4,962,172 


3,404,876 


1,568,083 

Commercial Paper 


3,870,883 


3,870,883 


- 


- 


- 

Negotiable Certificates of Deposit 


3,046,197 


3,045,895 


302 


- 


- 

Repurchase Agreements 


1,537,266 


1,537,266 


- 


- 


- 

Municipal Securities 


261,636 


2,649 


37,700 


104,324 


116,963 

Asset-Backed Securities 


576,120 


316,619 


96,135 


46,311 


117,055 

Agency Mortgage-Backed Securities 


2,640,167 


208,636 


1,587,664 


728,920 


114,947 

Agency Unsecured Bonds and Notes 


2,415,108 


1,726,719 


451,182 


11,810 


225,397 

Mutual and Money Market Funds (Includes SNAP) 


1,595,375 


1,595,375 


- 


- 


- 

The Boston Company Ftaoled Employee Trust Fund 


221,875 


221,875 


- 


- 


- 

Guaranteed Investment Contracts 


778,274 


- 


778,274 


- 


- 

Fixed Income and Commingled Funds 

Investments held by broker-dealers under securities loans 


1,243,271 


256 


267,647 


975,368 


- 

U. S. Government and Agency Securities 


430 


102 


328 


- 


- 

Corporate Bonds 


1,139 


325 


521 


293 


- 

Other 


1,108,199 


456,644 


387,664 


206,625 


57,266 

Total 

$ 

38,538,637 

$ 

17,428,238 

$ 

11,954,463 

$ 

6,420,494 

$ 

2,735,442 


Investment Type 

Component Unit Investments 

(Dollars in Thousands) 

Fair Less 

Value Than 1 

Investment Maturities (in years) 

1-5 6-10 


More 

Than 10 

Debt Securities 











U. S. Treasury and Agency Securities 

$ 

1,065,757 

$ 

112,636 

$ 

247,685 

$ 

30,153 

$ 

675,283 

Corporate Bonds and Notes 


437,752 


147,404 


244,794 


40,903 


4,651 

Commercial Paper 


323,819 


319,819 


4,000 


- 


- 

Negotiable Certificates of Deposit 


52,761 


23,119 


29,642 


- 


- 

Repurchase Agreements 


25,741 


25,741 


- 


- 


- 

Reverse Repurchase Agreements 


340,000 


340,000 


- 


- 


- 

Municipal Securities 


3,516,659 


20,989 


78,418 


98,432 


3,318,820 

Asset-Backed Securities 


176,753 


10,207 


122,115 


9,474 


34,957 

Agency Unsecured Bonds and Notes 


320,016 


263,036 


49,966 


6,723 


291 

Agency Mortgage-Backed Securities 


121,518 


17,270 


38,589 


11,641 


54,018 

Mutual and Money Market Funds (Includes SNAP) 


971,923 


789,728 


19,477 


158,625 


4,093 

Guaranteed Investment Contracts 


57,278 


2,155 


9,775 


19,066 


26,282 

Fixed Income and Commingled Funds 


46,437 


892 


44,637 


908 


- 

Other 


7,476 


6,233 


1,178 


65 


- 

Total 


7,463,890 

$ 

2,079,229 

$ 

890,276 

$ 

375,990 

$ 

4,118,395 


Commonwealth of Virginia 95 












Foundation Investments 

(Dollars in Thousands) 


Investment Tvne 


Fair Value 

U.S. Treasury and Agency Securities 

$ 

1,025,876 

Common & Preferred Stocks 


941,811 

Corporate Bonds and Notes 


193,776 

Negotiable Certificates of Deposit 


14,048 

Municipal Securities 


3,180 

Repurchase Agreements 


443 

Asset Backed Securities 


1,361 

Agency Mortgage Backed 


5,201 

Mutual and Money Market Funds 


754,639 

Real Estate 


547,452 

Index Funds 


154,109 

Hedge Funds 


2,356,270 

Partnerships 


2,135,161 

Venture Capital 


384,142 

Others 


3,301,328 

Total 

$ 

11,818,797 


Note: Foundations represent FASB reporting entities defined in Note I.B. 

A portion of these amounts are reported at cost rather than fair value 
because fair value was not available or readily determinable. 


Credit Risk 

Credit risk is the risk that an issuer or other counterparty 
to an investment will not fulfill its obligations. The State 
Treasurer places emphasis on securities of high credit 
quality and marketability. At the time of purchase, the 
following limitations are in place: 

• Bankers acceptances: P-1, Moody’s Investors 
Service (Moody’s) and A-1, Standard & Poor’s 
(S&P) 

• Negotiable CDs and bank notes: 

o maturities of one year or less: P-1, Moody’s 
and A-1, S&P 

o maturities over one year: Aa, Moody’s and AA, 
S&P 

• Commercial paper: P-1, Moody’s and A-1, S&P 

• Corporate Notes and Bonds: A3/A- or equivalent by 
two nationally recognized rating agencies, one of 
which must be Moody’s or S&P. However, each 
external investment manager may invest up to 10.0 
percent of their portfolio in Baa2/BBB rated bonds 
which, at a minimum, must be rated Baa2/BBB by 
two nationally recognized rating agencies, one of 
which must be either Moody’s or S&P. 

• Municipal Bonds: A3/A- or equivalent by two 
nationally recognized rating agencies, one of which 
must be Moody’s or S&P 

• Asset-backed securities: AAA by two nationally 
recognized rating agencies, one of which must be 
Moody’s or S&P 


• Dollar denominated obligations of sovereign 
governments: Aaa, Moody’s and AAA, S&P 

• Commercial Mortgage-Backed Securities (CMBS) 
and Collateralized Mortgage Obligations (CMOs): 
AAA by two nationally recognized rating agencies, 
one of which must be Moody’s or S&P 

The following tables present the credit ratings for the 
majority of the investments of the primary government 
and component units as of June 30, 2015. The ratings 
presented are using S&P and Moody’s rating scales. 
Within the primary government, the investments 
presented in the table represented 83.3 percent of the 
total debt securities. Within the component units, the 
investments presented in the table represented 87.3 
percent of the total debt securities, 44.2 percent of 
which were invested in unrated Municipal Securities. 

Credit risk for derivative instruments held by the 
Commonwealth results from counterparty risk assumed 
by the Commonwealth. This is essentially the risk that 
the borrower will be unable to meet its obligation. 
Information regarding the Commonwealth’s credit risk 
related to derivatives is found in Note 14. 

Policies related to credit risk pertaining to the 
Commonwealth’s securities lending program are found 
in the Securities Lending section of this note. 


96 Commonwealth of Virginia 




Credit Rating - Primary Government 

(Dollars in Thousands) 


_ Investment _ 

U. S. Treasury and Agency Securities $ 

Commercial Paper 

Agency Mortgage Backed Securities 

Agency Unsecured Bonds and Notes 

Corporate Bonds and Notes 

Negotiable Certificates of Deposit 

Negotiable Certificates of Deposit 

Corporate Bonds and Notes 

Corporate Bonds and Notes 

Corporate Bonds and Notes 

Corporate Bonds and Notes 

Corporate Bonds and Notes 

Corporate Bonds and Notes 

Corporate Bonds and Notes 

Commercial Paper 

Guaranteed Investment Contracts 

Corporate Bonds and Notes 

Other Debt Securities 

Repurchase Agreements 

Commercial Paper 

Repurchase Agreements 

Mutual and Money Market Funds (Include SNAP) 

Corporate Bonds and Notes 

Fixed Income and Commingled Funds 

Fixed Income and Commingled Funds 

Mutual and Money Market Funds (Include SNAP) 

Corporate Bonds and Notes 
Corporate Bonds and Notes 


Percent 


Amount 

Rating Agency 

Rating 

of Portfolio 

5,416,720 

N/A 

N/A 

14.1% 

2,461,000 

Moody's 

P-1 

6.4% 

2,444,628 

Moody's 

Aaa 

6.3% 

2,072,195 

Standard & Floor's 

AA+ 

5.4% 

1,925,346 

Moody's 

NR 

5.0% 

1,526,351 

Standard & Floor's 

A-1 

4.0% 

1,384,418 

Moody's 

P-1 

3.6% 

1,158,783 

Moody's 

Baa2 

3.0% 

1,083,140 

Moody's 

Baal 

2.8% 

998,931 

Moody's 

A3 

2.6% 

932,203 

Moody's 

Aa3 

2.4% 

851,803 

Moody's 

Aa2 

2.2% 

797,714 

Moody's 

Baa3 

2.1% 

791,931 

Moody's 

A1 

2.1% 

790,233 

Standard & Floor's 

A-1 

2.1% 

778,274 

N/A 

N/A 

2.0% 

634,271 

Moody's 

A2 

1.7% 

632,067 

Moody's 

Aaa 

1.6% 

623,581 

Moody's 

NR 

1.6% 

619,650 

Moody's 

P-2 

1.6% 

600,000 

Standard & Floor's 

AA+ 

1.6% 

589,187 

Standard & Floor's 

A-3 

1.5% 

584,225 

Moody's 

B1 

1.5% 

538,026 

Moody's 

Baal 

1.4% 

497,121 

N/A 

N/A 

1.3% 

466,158 

Standard & Floor's 

Aaa 

1.2% 

412,163 

Moody's 

Ba3 

1.1% 

411,878 

Moody's 

Bal 

1.1% 


Investment 

Credit Ftating - Component Units 

(Dollars in Thousands) 

Amount 

Ftating Agency 

Rating 

Percent 

of Portfolio 

Municipal Securities 

$ 3,301,153 

N/A 

N/A 

44.2% 

U. S. Treasury and Agency Securities 

1,065,757 

N/A 

N/A 

14.3% 

Mutual and Money Market Funds (Include SNAP) 

618,586 

Standard & Floor's 

AAA 

8.3% 

Reverse Repurchase Agreements 

340,000 

Standard & Poor's 

BBB- 

4.6% 

Agency Unsecured Bonds and Notes 

276,821 

Moody's 

Aaa 

3.7% 

Mutual and Money Market Funds (Include SNAP) 

243,057 

N/A 

N/A 

3.3% 

Commercial Paper 

228,747 

Moody's 

P-1 

3.1% 

Asset Backed Securities 

83,504 

Moody's 

Aaa 

1.1% 

Commercial F’aper 

72,083 

N/A 

N/A 

1.0% 

Corporate Bonds and Notes 

65,000 

Moody's 

A1 

0.9% 

Corporate Bonds and Notes 

58,175 

N/A 

N/A 

0.8% 

Guaranteed Investment Contracts 

53,291 

Moody's 

A2 

0.7% 

Agency Mortgage Backed Securities 

49,521 

Standard & Poor's 

AA+ 

0.7% 

Fixed Income and Commingled Funds 

46,437 

N/A 

N/A 

0.6% 


Commonwealth of Virginia 97 






Concentration of Credit Risk 

Concentration of credit risk is related to the risk of loss 
that may be attributed to the magnitude of a 
government’s investment in a single issuer. The 
Commonwealth holds no investment in the securities of 
a single issuer that is more than 5.0 percent of the total 
market value of its investments. In addition, the State 
Treasury and the System have individual investment 
policies limiting the amounts that may be invested in any 
single issuer. 

It is the State Treasurer’s policy that each portfolio will 
be diversified with no more than 4.0 percent of the value 
of the fund invested in the securities of any single 
issuer. This limitation shall not apply to the U.S. 
Government, or agency thereof, or U.S. Government 
sponsored corporation securities and fully insured 
and/or collateralized certificates of deposit. Certain 
portfolios are limited to amounts less than 4.0 percent of 
the value of the fund invested in the securities of any 
single issuer. 

The System investment guidelines for each specific 
portfolio also limit investments in any corporate entity to 
no more than 5.0 percent of the market value of the 
account for both the internally and externally managed 
portfolios. There is no concentration of investments in 
any one organization that represents 5.0 percent or 
more of plan net position available for benefits. 


Foreign Currency Risk 
Primary Government 

Foreign currency risk is the risk that changes in 
exchange rates will adversely impact the fair value of an 
investment. All primary government investments 
exposed to foreign currency risk were part of the 
System, the Virginia College Savings Plan, and the 
Unclaimed Property portfolios at June 30, 2015. 

Foreign currency risk exposure, or exchange rate risk, 
primarily exists in the international and global equity 
investment holdings. From time to time, external 
managers may hedge their portfolios’ foreign currency 
exposures with currency forward contracts. This will 
depend upon their views about a specific foreign 
currency relative to the U.S. dollar. Exposure to foreign 
currency risk is highlighted in the following table. 

Component Units 

All nonmajor component unit investments exposed to 
foreign currency risk were part of the College of William 
and Mary, James Madison University, the Virginia 
Economic Development Partnership, and the Virginia 
Biotechnology Research Partnership Authority portfolios 
at June 30, 2015. 


98 Commonwealth of Virginia 




Foreign Currency Exposures by Asset Class - Primary Government 

(Dollars in Thousands) 


_ Currency _ 

Euro Currency Unit 
Japanese Yen 
Hong Kong Dollar 
British Fbund Sterling 
South Korean Won 
Australian Dollar 
Swiss Franc 
Canadian Dollar 
New Taiw an Dollar 
US Dollar 
Brazil Real 

South African Comm Rand 
New Turkish Lira 
Norw egian Krone 
Indian Rupee 
Mexican New Peso 
Thailand Baht 
Swedish Krona 
Malaysian Ringgit 
Indonesian Rupiah 
Polish Zloty 
Danish Krone 
Chilean Peso 
Philippine Peso 
Colombian Paso 
Russian Ruble 
Hungarian Forint 
Turkish Lira 
Egyptian Pound 
Peruvian Nuevo Sol 
Nigerian Naira 
Romanian Leu 
Qatari Riyal 
UAE Dirham 
Isreali Shekel 
Czech Koruna 
Chinese Yuan Renminbi 
Moroccan Dirham 
Singapore Dollar 
New Zealand Dollar 

Total 


_ Currency 

U.S. Dollar 
British Pound Sterling 
Euro Currency Unit 
Other 

Total 


Cash & Cash 
Equivalents 

Equity 

$ 24,798 

$ 1,232,550 

22,445 

1,147,646 

2,226 

673,036 

4,783 

628,210 

1,467 

395,561 

1,494 

390,771 

4,501 

302,137 

1,076 

251,299 

3,441 

255,486 

1,743 

179,751 

886 

168,480 

473 

100,564 

717 

144,307 

292 

87,734 

1,238 

48,888 

404 

88,130 

109 

99,552 

581 

56,753 

1,011 

57,564 

1,204 

25,038 

99 

68,739 

436 

38,905 

148 

18,902 

700 

298 

241 

2,758 

257 

7,012 

7,189 

- 

105 

6,561 

- 

9 

285 

- 

140 

- 

- 

1,330 

- 

945 

786 

558 

4 

1 

488 

1 

1,976 

(66,163) 

342 

(110,004) 


$ 87,599 $ 6,303,795 


Fixed 

Income Private Equity 

$ (55,109) $ 738,777 

(1,216) 

(2,281) 

(316) 

(23,077) 

(1,981) 

7 

441 


32,295 

44,268 

46,206 

35,390 

69,970 

23,901 

39,225 

37,398 

44,933 

319 

9,935 

22,548 

15,234 

7,418 


6,411 

4,153 

4,051 


(525) 


(19,667) 

260 


$ 340,191 $ 738,777 


Corporate 


Real Estate 

Bonds 

$ 59,682 

$ 21,699 

498 

6,002 

4,939 

3,552 


(184,953) 3,278 


(35,998) 

- 

1,084 

2,188 

23,330 

2,817 


(1,073) 

810 


(406) 


1,236 


$ (132,087) $ 40,772 


International 

Funds _ Total _ 

$ - $ 2,022,397 

1,175,375 
681,472 
451,002 

373.951 
354,286 
309,917 
278,963 
258,927 

251,608 251,608 

213,789 
213,634 
147,243 

143.951 
123,416 
120,906 
112,435 

99,661 

96,559 

95,973 

71,175 

68,432 

39,660 

28,985 

23,546 

18,233 

14,687 

7,189 

6,666 

6,420 

4,438 

4,191 

1,330 

945 

819 

492 

1 

1 

(82,618) 

__ (109,402) 


$ 251,608 $ 7,630,655 


Foreign Currency Exposures by Asset Class - Component Units 

(Dollars in Thousands) 


Cash & Cash 
Equivalents 

Equity 

Fixed Income 

Private Equity 

Real Estate 

International 

Funds 


Total 

$ 

1,327 

2,808 

4 

$ 

$ 

$ 

$ 

$ 574 

$ 

574 

1,327 

2,808 

4 

$ 4,139 

$ 

$ 

$ 

$ 

$ 574 

$ 

4,713 


Commonwealth of Virginia 99 








Securities Lending 

The State Treasury’s securities lending program is 
managed by Deutsche Bank AG, New York (Deutsche 
Bank), under a contract dated March 28, 2014. The 
enabling legislation for the securities lending program is 
Section 2.2-4506 of Chapter 45 of the Code of Virginia, 
as amended. No violations of legal or contractual 
provisions were noted during the year. The general 
account participated in a securities lending program for 
the entire year. 

All securities lending loans are on an open-ended or 
one-day basis and may be terminated by the State 
Treasury with a 24-hour notice or are term loans with 
the right of substitution. While all securities may be 
recalled on a daily basis, securities are often on loan for 
much longer periods. Generally cash reinvestments 
security maturities do not match the maturities of loans. 
Per the contract with Deutsche Bank, all cash collateral 
reinvestment securities attributable to loans made on 
the Commonwealth’s behalf shall be maintained by 
Deutsche Bank, and the State Treasury cannot pledge 
or sell such collateral absent a default. 

The State Treasury’s contract with Deutsche Bank 
provides for loss indemnification against insolvency 
default with respect to lending transactions and in the 
case of reverse transactions (Repurchase Agreements) 
as defined in the applicable Agency Securities Lending 
and Repurchase Agreement. Additionally, Deutsche 
Bank AG is liable for any losses experienced from 
reinvestment of cash collateral in investments not 
authorized by the provisions of the investment 
guidelines for the Commonwealth of Virginia agreed 
upon by both parties and made a part of the Agency 
Securities Lending and Repurchase Agreement. There 
were no realized losses resulting from default during this 
reporting period. 

When securities are loaned, the collateral received is at 
least 100.0 percent of fair value of the securities loaned 
and must be maintained at 100.0 percent or greater. 
There are no stated restrictions on the amount of 
securities that may be loaned, but the basic composition 
of the general account portfolio effectively restricts the 
maximum percentage of the portfolio that may be 
loaned. During the past fiscal year, approximately 9.4 
percent of the general account securities were on loan. 

During the past year, a combination of U.S. Treasury, 
agency, agency mortgage and corporate securities have 
been loaned, with the majority of the loaned securities 
being U.S. Treasury and agency securities. At June 30, 
2015, all collateral received was in the form of cash. 

Securities loaned for the State Treasurer’s cash 
collateral reinvestment pool, which consisted of 69.4 
percent general account funds and 30.6 percent Virginia 
Lottery funds as of June 30, 2015, had a carrying value 
of $270.4 million and a fair value of $319.3 million. The 
fair value of the collateral received was $325.1 million 
providing for coverage of 101.8 percent. At year-end, 
the State Treasury’s securities lending program has no 
credit risk exposure to borrowers because the amounts 
it owes the borrowers exceeded the amounts the 
borrowers owe Treasury’s securities lending program. 
All securities are marked to market daily. The carrying 


value of the cash collateral reinvestment pool received 
was $325.1 million and the fair value of the investments 
purchased with the cash collateral was $325.0 million. 
As of June 30, 2015, the State Treasurer’s cash 
collateral reinvestment pool had an unrealized loss of 
$15,055, and is recorded in the General Fund as stated 
in Note 1.DD. This amount is included in the total State 
Treasurer’s Portfolio discussed earlier in this note. 

Cash collateral reinvestment guidelines were amended 
effective April 16, 2014. Approved investment 
instruments include Indemnified Repurchase 
Agreements marked to market daily and preapproved 
Government Money Market Funds. Term repurchase 
agreements are limited to 93 days. At June 30, 2015, 
approximately 96.5 percent of cash collateral 
reinvestments were in indemnified repurchase 
agreements, and 3.5 percent were legacy direct 
investments of asset-backed (including mortgage- 
backed) floating rate securities. 

At June 30, 2015, the cash collateral reinvestment 
portfolio had a weighted average maturity of four days 
using the next interest reset date as the maturity date 
for floating rate securities. Using the expected maturity 
date, the weighted average maturity was 261 days and 
using the final maturity date, which assumes no pay 
downs on any asset-backed or mortgage-backed 
securities, the weighted average maturity was 1.4 years. 

At June 30, 2015, $11.4 million, or 3.5 percent, of the 
total par value of the cash collateral reinvestment 
portfolio was out of compliance with the State 
Treasury’s current cash collateral reinvestment 
guidelines due to various security ratings downgrades 
during the past few years and adoption of more 
restrictive reinvestment guidelines in 2014. The 
securities are not in default and are making principal 
payments. Approximately 69.4 percent of these out of 
compliance securities are part of the general account 
portion of the securities lending program and the other 
30.6 percent is the Virginia Lottery’s portion of the 
securities lending program. The Commonwealth 
regularly evaluates these positions to determine the 
most beneficial course of action going forward. 

Under authorization of the Board, the Virginia 
Retirement System (the System) lends its fixed income 
and equity securities to various broker-dealers on a 
temporary basis. This program is administered through 
an agreement with the System’s custodial agent bank. 
All security loan agreements are collateralized by cash, 
securities, or an irrevocable letter of credit issued by a 
major bank, and have a market value equal to at least 
102.0 percent of the market value for domestic 
securities and 105.0 percent for international securities. 
Securities received as collateral cannot be pledged or 
sold by the System unless the borrower defaults. 
Contracts require the lending agents to indemnify the 
System if the borrowers fail to return the securities lent 
and related distributions and if the collateral is 
inadequate to replace the securities lent. All securities 
loans can be terminated on demand by either the 
System or the borrowers. The majority of loans are open 
loans, meaning the rebate is set daily. This results in a 
maturity of one or two days on average, although 
securities are often on loan for longer periods. The 
maturity of loans generally does not match the maturity 


100 Commonwealth of Virginia 




of collateral investments, which averages 26 days. At 
year-end, the System has no credit risk exposure to 
borrowers because the amounts it owes the borrowers 
exceeded the amounts the borrowers owe the System. 
All securities are marked to market daily and carried at 
market value. The market value of securities on loan at 
June 30, 2015, was $7.5 billion. The June 30, 2015, 
balance was composed of U.S. Government and 
agency securities of $3.1 billion, corporate and other 
bonds of $254.1 million and common and preferred 
stocks of $4.2 billion. The value of collateral (cash and 
non-cash) at June 30, 2015, was $8.0 billion. 


At June 30, 2015, the invested cash collateral had a 
market value of $3.4 billion and was composed of 
commercial paper of $375.8 million, certificates of 
deposit of $323.0 million, floating rate notes of $2.1 
billion, asset-backed securities of $0.2 million, money 
funds of $190.2 million, and repurchase agreements of 
$385.5 million. 


Commonwealth of Virginia 101 




7. RECEIVABLES 


The following schedule (dollars in thousands) details the accounts, loans, interest, taxes, prepaid tuition contributions, security 
transactions, and other receivables presented in the major funds, aggregated nonmajor funds by type, internal service funds, 
fiduciary funds, major component units, and aggregated nonmajor component units, as of June 30, 2015. 


Prepaid 

Loans / Tuition 



Accounts 

Receivable 

Mortgage 

Receivable 

Interest 

Receivable 

Taxes 

Receivable 

Contributions 

Receivable 

Primary Government: 

General 

Major Special Revenue Funds: 

$ 1,031,333 

$ 260 

$ 353,324 

$ 1,797,693 

$ 

Commonwealth Transportation 

135,391 

113,410 

- 

178,520 

- 

Federal Trust 

733,922 

228 

- 

- 

- 

Literary 

272,327 

127,800 

28,223 

- 

- 

Nonmajor Governmental Funds 

Major Enterprise Funds: 

106,482 

291 

12,007 

7,145 

- 

Virginia Lottery 

72,343 

- 

- 

- 

- 

Virginia College Savings Ran 

15,003 

- 

4,523 

- 

209,269 

Unemployment Compensation 

157,284 

- 

- 

- 

- 

Nonmajor Enterprise Funds 

98,195 

- 

- 

- 

- 

Internal Service Funds 

9,479 

- 

- 

- 

- 

Private Purpose Trust Funds 

2 

4 

2,174 

- 

- 

Pension and Other Employee Benefit Trust Funds (1) 

243,323 

- 

224,154 

- 

- 

Investment Trust Fund 

- 

- 

755 

- 

- 

Agency Funds 

641 

- 

- 

104,946 

- 

Total Primary Government (2) 

$ 2,875,725 

$ 241,993 

$ 625,160 

$ 2,088,304 

$ 209,269 

Discrete Component Units: 

Virginia Housing Development Authority (3) 

$ 

$ 6,949,124 

$ 31,649 

$ 

$ 

Virginia Public School Authority 

- 

- 

65,287 

- 

- 

Virginia Resources Authority 

- 

4,273,425 

29,668 

- 

- 

Virginia College Building Authority 

- 

- 

25,184 

- 

- 

Nonmajor Component Units (4) 

1,652,679 

172,284 

3,124 

5,929 

- 

Total Component Units 

$ 1,652,679 

$ 11,394,833 

$ 154,912 

$ 5,929 

$ 


Note (1): Other Receivables of the Pension and Other Employee Benefit Trust Fund of $188,069 (dollars in thousands) are made up of 
$176,313 (dollars in thousands) in pending investment transactions, which includes $174,203 (dollars in thousands) futures 
margins receivable and $2,110 (dollars in thousands) in securities lending; and $11,756 (dollars in thousands) in 
other receivables related to benefit plans. 

Note (2): Fiduciary net receivables in the amount of $2,167,625 (dollars in thousands) are not included in the Government-wide Statement 
of Net Position. 

Note (3): Virginia Flousing Development Authority (major component unit) reports $6,670,592 (dollars in thousands) as Restricted Loans 
Receivable, $29,853 (dollars in thousands) as Restricted Interest Receivable, and $339,849 as Restricted Other Receivables. 

Note (4): Other Receivables of the nonmajor component units are primarily comprised of pledges receivable of $20,007 (dollars in 

thousands) reported by the University of Virginia; sponsors accounts receivable of $25,050 (dollars in thousands) reported by 
Virginia Commonwealth University; premium receivables of $78,859 (dollars in thousands) and third-party settlements and non¬ 
patient receivables of $60,193 (dollars in thousands) reported by Virginia Commonwealth University Health System Authority 
(blended component unit of Virginia Commonwealth University); grants and contracts receivable of $23,987 (dollars in thousands) 
reported by George Mason University; and $58,386 (dollars in thousands) reported by foundations of the higher education 
institutions representing FASB reporting entities defined in Note 1 ,B.; and $28,250 (dollars in thousands) reported by the Virginia 
Biotechnology Research Partnership Authority. 


102 Commonwealth of Virginia 











Security 

Transactions 

Other 

Receivables 

Allowance 

for 

Doubtful 

Accounts 


Net 

Accounts 

Receivable 

Amounts 

to be Collected 

Greater than 

One Year 

$ 

$ 

$ (1,476,896) 

$ 

1,705,714 

$ 375,568 

- 

- 

(29,013) 


398,308 

3,786 

- 

- 

(6,427) 


727,723 

10 

- 

- 

(269,228) 


159,122 

111,319 

- 

i 

(54,336) 


71,590 

285 

_ 

_ 

_ 


72,343 

_ 

- 

- 

- 


228,795 

159,417 

- 

- 

(29,472) 


127,812 

- 

- 

- 

(1,767) 


96,428 

- 

- 

- 

(486) 


8,993 

- 

- 

- 

- 


2,180 

- 

1,450,934 

188,069 

- 


2,106,480 

- 

- 

- 

- 


755 

- 

- 

- 

(47,377) 


58,210 

5,816 

$ 1,450,934 

$ 188,070 

$ (1,915,002) 

$ 

5,764,453 

$ 656,201 


7,949 

$ 

(193,856) 

$ 

6,794,866 

$ 

6,428,428 

- 


- 


65,287 


- 

1,154 


(313) 


4,303,934 


4,030,520 

- 


- 


25,184 


- 

322,115 


(789,890) 


1,366,241 


245,235 

331,218 

$ 

(984,059) 

$ 

12,555,512 

$ 

10,704,183 



Commonwealth of Virginia 103 







8. CONTRIBUTIONS RECEIVABLE, NET 


The following schedule details the contributions receivable for foundations* 1 * included with the nonmajor component units, as 
of June 30, 2015. The major component units reported no contributions receivable for fiscal year 2015. 


(Dollars in Thousands) 


Due in 

Due 

Between 

Due in 


Present 

Allowance 

for 

Contributions 

Less Than 

One and 

More Than 


Value 

Doubtful 

Receivable, 

One Year 

Five Years 

Five Years 

Subtotal 

Discount (2) 

Accounts 

Net 


Discrete Component Units: 

Nonmajor Component Units 

$ 

143,141 

$ 

219,429 $ 

67,873 

$ 

430,443 

$ 

(23,734) 

$ 

(25,765) 

$ 

380,944 

Total Component Units 

$ 

143,141 

$ 

219,429 $ 

67,873 

$ 

430,443 

$ 

(23,734) 

$_ 

(25,765) 

$ 

380,944 


Note (1): Foundations represent FASB reporting entities defined in Note I.B. 

Note (2): The discount rate used to determine present value ranges from 0.1 percent to 10.0 percent. 


9. INTERFUND AND INTER-ENTITY ASSETS / 
LIABILITIES 

Due from/to Other Funds 

Due from Other Funds are amounts to be received from 
one fund by another fund for goods sold or services 
rendered. Due to Other Funds are amounts owed by 
one fund to another fund for goods purchased or 
services obtained. 

The following line items are included in the category 
“Due from Other Funds”: 

• Due from Other Funds 

• Due from Internal Parties (Governmental Funds 
and Business-type Activities) 

• Due from External Parties (Fiduciary Funds) 


The following line items are included in the category 
“Due to Other Funds”: 

• Due to Other Funds 

• Due to Internal Parties (Governmental Funds and 
Business-type Activities) 

• Due to External Parties (Fiduciary Funds) 

The following schedule shows the Due from/to Other 
Funds as of June 30, 2015. 


104 Commonwealth of Virginia 









(Dollars in Thousands) 


Schedule of Due from/to Other Funds 

June 30, 2015 


Due From _ 

Primary Government 

General Fund 


Major Special Revenue Funds: 
Federal Trust 


Nonmajor Governmental Funds 


Major Enterprise Funds: 

Unemployment Compensation 


Nonmajor Enterprise Funds 


Internal Service Funds 


Pension and Other Employee Benefit Trust Funds 
Total Primary Government 


Amount Due To 


Amount 


Primary Government 

$ 18,874 Major Special Revenue Funds: 

Federal Trust 
Major Enterprise Funds: 

Virginia Lottery 
Nonmajor Enterprise Funds 
Internal Service Funds 


$ 347 

4,255 

13,056 

1,216 


2,778 Major Enterprise Funds: 

Unemployment Compensation 


2,778 


9,686 Major Special Revenue Funds: 

Commonwealth Transportation 
Federal Trust 

Nonmajor Governmental Funds 
Major Enterprise Funds: 

Unemployment Compensation 
Nonmajor Enterprise Funds 
Internal Service Funds 


5,374 

3,008 

400 

214 

611 

79 


682 General Fund 550 

Major Special Revenue Funds: 

Commonwealth Transportation 1 

Federal Trust 22 

Nonmajor Governmental Funds 91 

Major Enterprise Funds: 

Virginia Lottery 4 

Nonmajor Enterprise Funds 14 

733 General Fund 169 

Major Special Revenue Funds: 

Commonwealth Transportation 294 

Federal Trust 79 

Nonmajor Governmental Funds 116 

Nonmajor Enterprise Funds 12 

Internal Service Funds 63 


52,087 General Fund 

Major Special Revenue Funds: 
Commonwealth Transportation 
Federal Trust 

Nonmajor Governmental Funds 
Major Enterprise Funds: 

Virginia Lottery 
Virginia College Savings Ran 
Nonmajor Enterprise Funds 
Internal Service Funds 


29,210 

8,929 

5,613 

5,412 

182 

64 

2,029 

648 


_20 

$ 84,860 


Private Purpose Trust Funds 
Total Primary Government 


_20 

$ 84,860 


Commonwealth of Virginia 105 






(Dollars in Thousands) 


Schedule of Due from/to Internal/External Parties 

June 30, 2015 


Due From 


Amount Due To 


Amount 


Primary Government 



Primary Government 



Nonmajor Governmental Funds 

$ 

71 

Agency 

$ 

71 

Internal Service Funds 


202 

Private Purpose Trust 


26 




Pension and Other Employee Benefit Trust Funds 


176 

Pension and Other Employee Benefit Trust Funds 


25,767 

General Fund 

Major Special Revenue Funds: 


15,909 




Commonwealth Transportation 


4,106 




Federal Trust 


2,102 




Nonmajor Governmental Funds 

Major Enterprise Funds: 


2,529 




Virginia Lottery 


155 




Virginia College Savings Ran 


59 




Nonmajor Enterprise Funds 


562 




Internal Service Funds 


345 

Total Primary Government 

_$_ 

26,040 

Total Primary Government 

_$_ 

26,040 


Interfund Receivables/Payables 

Interfund Receivables/Payables are loans made by one fund to another. 

The following schedule shows the Interfund Receivables/Payables for the primary government as of June 30, 2015. There 
were no Interfund Receivables/Payables for the component units as of June 30, 2015. 


(Dollars in Thousands) 


Receivable From: 

Amount 

Payable To: 

Amount 

Primary Government 


Primary Government 


Nonmajor Governmental Funds 

$ 122,763 

Major Special Revenue Funds: 

Federal Trust 

Nonmajor Enterprise Funds 

Internal Service Funds 

$ 7,094 

37,065 
78,604 

Total Primary Government 

$ 122,763 

Total Primary Government 

$ 122,763 


106 Commonwealth of Virginia 








Due from/to Primary Government and Component 
Units 

Included in this category is activity between the 
Commonwealth and its component units, as well as 
activity between component units. 

A due from primary government amount that is due from 
the Federal Trust Fund (major special revenue) to the 
Virginia College Building Authority (major component 
unit) of $4.1 million is for interest on Build America 
Bonds (BABs). 

A $8.2 million due from primary government amount 
represents General Fund (major governmental) 
appropriation available amounts that are due from the 
General Fund to higher education institutions (nonmajor 
component units). The General Fund reports $74,929 in 
the fund financial statements and $8.1 million in the 
government-wide financial statements. 

A $20,798 due from primary government amount 
represents an amount due from a nonmajor 
governmental fund related to the Department of the 
Treasury’s reimbursement programs to a higher 
education institution (nonmajor component unit). 

A $1.1 million due from component units amount 
represents amounts due to the General Fund (major 
governmental) from higher education institutions 
(nonmajor component units) related to interest. 

A $19.3 million due from component units in the Health 
Care Fund (internal service fund) represents amounts 
due from the nonmajor component units. 

A $596,684 due from component units represents 
monies owed for administrative and project expenses 
from the Science Museum of Virginia Foundation 
(nonmajor component unit) to a nonmajor governmental 
fund. The entire nonmajor governmental amount is 
reported in the government-wide financial statements. 


The $135.1 million due from component units amount 
represents amounts due from the Virginia College 
Building Authority (major component unit) for the 
Department of the Treasury’s reimbursement programs 
to higher education institutions (nonmajor component 
units). There is a due to component units of $8.0 million 
from a foundation of the Old Dominion University 
(nonmajor component unit) to the Virginia Commercial 
Space Flight Authority (nonmajor component unit). 

Due from/to Component Units and Fiduciary Funds 

A $29.4 million due from component units in the 
Pension and Other Employee Benefit Trust Funds 
(fiduciary funds) represents amounts due from nonmajor 
component units. 

Loans Receivable/Payable Between Primary 
Government and Component Units 

The Richard Bland College (part of the College of 
William and Mary - nonmajor component unit) loan of 
$129,092 was to advance fund the VCBA Equipment 
Trust Fund program. The George Mason University and 
the Virginia Community College System (nonmajor 
component units) loans of $12.5 million and $4.0 million, 
respectively, were used to advance fund federally- 
funded programs. The Roanoke Higher Education 
Authority (nonmajor component unit) loan of $2.4 million 
was used to advance fund the VCBA 21 st Century 
program. These amounts are due to a nonmajor 
governmental fund. 

The $185.9 million in loans receivable from primary 
government represents loans from the Virginia Public 
School Authority (VPSA) (major component unit) to the 
Literary Special Revenue Fund (major governmental 
fund). The VPSA makes grants to local school divisions 
to finance the purchase of educational technology 
equipment. The VPSA makes these grants using the 
proceeds of notes issued for that purpose, which will be 
repaid from appropriations to be made by the Virginia 
General Assembly from the Literary Special Revenue 
Fund (major governmental fund). 


Commonwealth of Virginia 107 




10. OTHER ASSETS 


The following table summarizes Other Assets as of June 30, 2015. 

(Dollars in Thousands) _ 



Cash and 




Total 


Travel 


Other 


Other 


Advances 


Assets 


Assets 

Primary Government: 






General 

$ 970 

$ 

- 

$ 

970 

Major Special Revenue Funds: 






Commonwealth Transportation 

414 


- 


414 

Federal Trust 

1,625 


- 


1,625 

Nonmajor Governmental Funds 

729 


1,022 


1,751 

Major Enterprise Funds: 






Virginia Lottery 

1 


- 


1 

Nonmajor Enterprise Funds (1) 

209 


120,182 


120,391 

Internal Service Funds (2) 

3 


11,058 


11,061 

Agency Funds (3) 

- 


26 


26 

Total Ferrary Government (3) 

$ 3,951 

$ 

132,288 

$ 

136,239 

Discrete Component Units: 






Virginia Housing Development Authority 

$ 

$ 

9,122 

$ 

9,122 

Virginia Resources Authority 

- 


393 


393 

Nonmajor Component Units 

2,819 


89,549 


92,368 

Total Component Units 

$ 2,819 

$ 

99,064 

$ 

101,883 


Note (1): Of the $120,391 (dollars in thousands) shown above, $120,113 (dollars in thousands) represents amounts owed to the Route 
460 Funding Corporation of Virginia (nonmajor enterprise) by the Commonwealth Transportation Fund (major special revenue) 
that will not be received within 60 days. This amount is reclassified to an internal balance on the Government-wide Statement 
of Net Position. 

Note (2): Of the $11,061 (dollars in thousands) shown above, $9,079 (dollars in thousands) and $1,979 (dollars in thousands) represent 
Virginia Information Technologies Agency and Virginia Correctional Enterprises, respectively, amounts due from various 
governmental funds that will not be received within 60 days. These amounts are reclassified to an internal balance on the 
Government-wide Statement of Net Position. 

Note (3): Other Assets of the Agency Funds represent prepaid expenses and advances to third party agents. The $26 (dollars in 
thousands) shown above is not included in the Government-wide Statement of Net Position. 


108 Commonwealth of Virginia 




11. RESTRICTED ASSETS 

Restricted assets represent monies or other resources 
that must be used for specific legal or contractual 
requirements. The Commonwealth Transportation Fund 
(major special revenue), Debt Service Fund (nonmajor 
governmental), and Capital Project Fund (nonmajor 
governmental) reported $892.2 million in restricted 
assets related to bond agreements. 

The Route 460 Funding Corporation of Virginia 
(nonmajor enterprise) reported restricted assets of 
$161.2 million for future debt service payments. 

The Virginia Housing Development Authority, the 
Virginia Public School Authority, and the Virginia 
College Building Authority (all major component units) 
reported restricted assets totaling $1.2 billion, $154.3 
million, and $167.0 million, respectively. These major 
component units’ assets are restricted for debt service 
under a bond indenture or other agreement, or for 
construction and equipment. 

The Virginia Resources Authority (major component 
unit) reported restricted assets of $673.1 million. Of this 
amount, $665.4 million is restricted for loans to local 
governments, bond indentures, or federal and state 
regulations for various revolving funds, and $7.7 million 
is restricted for the Operating Reserve Fund for the 
Virginia Pooled Financing Program. 

The Virginia Port Authority (nonmajor component unit) 
reported restricted assets of $156.0 million primarily for 
debt service under bond agreements, construction and 
other project funds. 


The Tobacco Indemnification and Community 
Revitalization Commission (nonmajor component unit) 
reported restricted assets of $214.0 million to be used 
for financial aid to tobacco growers and to foster 
community economic growth. 

The Hampton Roads Sanitation District Commission 
(nonmajor component unit) reported restricted assets of 
$86.5 million. Of this amount, $66.2 million is for debt 
service and $20.3 million is revenue bond construction 
funds. 

The Virginia Small Business Financing Authority 
(nonmajor component unit) reported restricted assets of 
$38.3 million for gifts and grants. 

The higher education institutions (nonmajor component 
units) reported restricted assets totaling approximately 
$4.7 billion primarily for endowment and other 
contractual obligations. Included in this amount is 
approximately $4.0 billion of foundations’ restricted 
assets. The two museum foundations, the Virginia 
Museum of Fine Arts Foundation (nonmajor component 
unit) and the Science Museum of Virginia Foundation 
(nonmajor component unit) had restricted assets of 
$259.4 million and $20.0 million, respectively, primarily 
for donor-imposed restricted endowments. 

The remaining $4.8 million is spread among the 
following nonmajor component units: the Virginia 
Outdoors Foundation, the Danville Science Center, the 
Fort Monroe Authority, the Virginia Arts Foundation, the 
Library of Virginia Foundation, and the Virginia Health 
Workforce Development Authority. 


Commonwealth of Virginia 109 




12. CAPITAL ASSETS 


The following schedule presents the changes in the Capital Assets as of June 30, 2015. 

Schedule of Changes in Capital Assets 
Governmental Activities 


(Dollars in Thousands) 



Balance 

July 1, 

as restated (1) 

Increases 

Decreases 

Balance 

June 30 

Nondepreciable Capital Assets: 

Land 

$ 2,821,876 

$ 164,548 

$ (50,920) 

$ 2,935,504 

Water Rights and/or Easements 

64,870 

4,900 

- 

69,770 

Infrastructure 

322,741 

- 

- 

322,741 

Construction-in-Progress (2) 

3,981,983 

1,961,045 

(1,923,938) 

4,019,090 

Total Nondepreciable Capital Assets 

7,191,470 

2,130,493 

(1,974,858) 

7,347,105 

Depreciable Capital Assets: 

Buildings (3) 

3,830,496 

205,517 

(24,949) 

4,011,064 

Equipment 

1,117,366 

70,746 

(26,267) 

1,161,845 

Infrastructure (4) 

30,670,853 

2,430,551 

(410,904) 

32,690,500 

Softw are 

475,847 

21,047 

- 

496,894 

Total Capital Assets being Depreciated 

36,094,562 

2,727,861 

(462,120) 

38,360,303 

Less Accumulated Depreciation for: 

Buildings 

1,313,636 

93,396 

(15,647) 

1,391,385 

Equipment 

632,590 

65,807 

(21,706) 

676,691 

Infrastructure 

13,209,454 

864,048 

(34,877) 

14,038,625 

Softw are 

222,282 

30,542 

- 

252,824 

Total Accumulated Depreciation 

15,377,962 

1,053,793 

(72,230) 

16,359,525 

Total Depreciable Capital Assets, Net 

20,716,600 

1,674,068 

(389,890) 

22,000,778 

Total Capital Assets, Net 

$ 27,908,070 

$ 3,804,561 

$ (2,364,748) 

$ 29,347,883 


Note (1): Beginning balances have been restated by $9.5 million as discussed in Note 2. There have also been reclassifications in 
the beginning balances of certain line items above. 

Note (2): Decreases include permanently impaired assets with a carrying value of $93,265 (dollars in thousands) as discussed in 
Note 31. 

Note (3): Includes temporarily impaired assets with a carrying value of $3,353 (dollars in thousands). 

Note (4): Decreases include permanently impaired assets with a carrying value of $41,296 (dollars in thousands) as discussed in 
Note 31. 

Depreciation Expense Charged to Functions of the Primary Government 

June 30, 2015 

(Dollars in Thousands) _ 


Governmental Activities: 

General Government $ 32,349 

Education 13,409 

Transportation 894,868 

Resources and Economic Development 18,407 

Individual and Family Services 28,983 

Administration of Justice 48,557 

Capital Assets held by the Internal Service 

Funds are charged to various functions 17,220 

Total $ 1,053,793 


110 Commonwealth of Virginia 





(Dollars in Thousands) 


Schedule of Changes in Capital Assets 
Business-type Activities 



Balance 

July 1 

Increases 

Decreases 

Balance 

June 30 

Nondepreciable Capital Assets: 

Land 

$ 1,977 

$ 

$ 

$ 1,977 

Construction-in-Progress (1) 

132,165 

5,120 

(132,683) 

4,602 

Total Nondepreciable Capital Assets 

134,142 

5,120 

(132,683) 

6,579 

Depreciable Capital Assets: 

Buildings 

30,639 

145 

- 

30,784 

Equipment 

63,835 

3,960 

(2,215) 

65,580 

Sof tw are 

4,790 

2,424 

(175) 

7,039 

Total Capital Assets being Depreciated 

99,264 

6,529 

(2,390) 

103,403 

Less Accumulated Depreciation for: 

Buildings 

12,586 

560 

- 

13,146 

Equipment 

50,174 

5,527 

(2,270) 

53,431 

Softw are 

2,107 

1,071 

- 

3,178 

Total Accumulated Depreciation 

64,867 

7,158 

(2,270) 

69,755 

Total Depreciable Capital Assets, Net 

34,397 

(629) 

(120) 

33,648 

Total Capital Assets, Net 

$ 168,539 

$ 4,491 

$ (132,803) 

$ 40,227 


Note (1): Decreases include permanently impaired assets with a carrying value of $131,351 (dollars in thousands) as discussed in 
Note 31. 


Commonwealth of Virginia 111 





Schedule of Changes in Capital Assets 
Component Units 


(Dollars in Thousands) 


Balance 

July 1 

as restated (1) 

Increases 

Decreases 


Subtotal 

June 30 

Foundations (2) 

Total 

June 30 

Nondepreciable Capital Assets: 









Land 

$ 587,699 

$ 18,186 

$ (5,675) 

$ 

600,210 

$ 

281,216 

$ 881,426 

Construction-in-Progress 

1,240,006 

1,261,682 

(830,383) 


1,671,305 


41,380 

1,712,685 

Inexhaustible Works of Art/Historical Treasures 

77,899 

609 

- 


78,508 


20,440 

98,948 

Livestock 

1,012 

156 

- 


1,168 


1,900 

3,068 

Total Nondepreciable Capital Assets 

1,906,616 

1,280,633 

(836,058) 


2,351,191 


344,936 

2,696,127 

Depreciable Capital Assets: 









Buildings 

14,118,340 

645,231 

(21,971) 


14,741,600 


1,198,517 

15,940,117 

Infrastructure 

3,141,538 

169,871 

(347) 


3,311,062 


4,606 

3,315,668 

Equipment 

3,126,695 

386,825 

(91,649) 


3,421,871 


149,150 

3,571,021 

Improvements Other Than Buildings 

491,572 

20,892 

(2,787) 


509,677 


74,962 

584,639 

Library Books 

812,428 

30,732 

(9,732) 


833,428 


- 

833,428 

Softw are 

408,441 

31,174 

(2,836) 


436,779 


- 

436,779 

Other Intangible Assets 

2,000 

- 

- 


2,000 


- 

2,000 

Total Capital Assets being Depreciated 

22,101,014 

1,284,725 

(129,322) 


23,256,417 


1,427,235 

24,683,652 

Less Accumulated Depreciation for: 









Buildings 

4,317,512 

407,534 

(10,147) 


4,714,899 


297,911 

5,012,810 

Infrastructure 

1,419,290 

86,120 

(160) 


1,505,250 


2,668 

1,507,918 

Equipment 

2,068,695 

323,344 

(89,303) 


2,302,736 


102,283 

2,405,019 

Improvements Other Than Buildings 

282,316 

21,594 

(1,058) 


302,852 


47,341 

350,193 

Library Books 

684,000 

33,173 

(9,675) 


707,498 


- 

707,498 

Softw are 

298,621 

30,539 

(2,313) 


326,847 


- 

326,847 

Other Intangible Assets 

1,333 

134 

- 


1,467 


- 

1,467 

Total Accumulated Depreciation 

9,071,767 

902,438 

(112,656) 


9,861,549 


450,203 

10,311,752 

Total Depreciable Capital Assets, Net 

13,029,247 

382,287 

(16,666) 


13,394,868 


977,032 

14,371,900 

Total Capital Assets, Net 

$ 14,935,863 

$ 1,662,920 

$ (852,724) 

$_ 

15,746,059 

$ 

1,321,968 

$ 17,068,027 


Note (1): Beginning balances have been restated by $46,465 (dollars in thousands) by nonmajor component units. 

Note (2): Foundations represent FASB reporting entities defined in Note I.B. Since foundations follow FASB rather than GASB reporting 
requirements, no amounts are reported in the software and other intangible assets categories for foundations. 


13. DEFERRED OUTFLOWS AND DEFERRED INFLOWS 
OF RESOURCES 

GASB Statement No. 65, Items Previously Reported as 
Assets and Liabilities, requires certain items to be 
classified as either deferred outflows or deferred inflows 
of resources. Additionally, deferred outflows or deferred 
inflows of resources are also required by other GASB 
statements. While all deferred outflows or deferred 
inflows of resources applicable to the Commonwealth 
are listed below, see Notes 14, 15, and 37 for additional 
information regarding these items. 


Deferred Outflows 

Deferred outflows of resources are a consumption of 
assets by the government that is applicable to a future 
reporting period. 

Deferred Inflows 

Deferred inflows of resources are an acquisition of 
assets by the government that is applicable to a future 
reporting period. 

The following tables summarize deferred outflows and 
deferred inflows as of June 30, 2015. 


112 Commonwealth of Virginia 















Government-wide Statements 


(Dollars in Thousands) Primary Government 

Total 



Governmental 

Business-type 




Component 



Actvities 


Activities 


Total 


Un its 

Deferred Outflows of Resources 









Effective Hedges in a Loss Position 

$ 

- 

$ 

- 

$ 

- 

$ 

6,019 

Loss on Refunding of Debt 


81,643 


- 


81,643 


444,181 

Pension Related 


425,405 


13,438 


438,843 


252,455 

Total Deferred Outflow s of Resources 

$ 

507,048 

$ 

13,438 

$ 

520,486 

$ 

702,655 

Deferred Inflows of Resources 









Effective Hedges in a Gain Position 

$ 

- 

$ 

- 

$ 

- 

$ 

4,828 

Service Concession Arrangements 


2,170,952 


- 


2,170,952 


72,970 

Gain on Refunding of Debt 


- 


- 


- 


29,843 

Pension Related 


747,362 


21,371 


768,733 


473,139 

Total Deferred Inflow s of Resources 

£ 

2,918,314 

$ 

21,371 

$ 

2,939,685 

$_ 

580,780 


Fund Statements 


(Dollars in Thousands) 


Deferred Outflows of Resources 

Total Deferred Outflows of Resources 

Deferred Inflows of Resources 

Revenues Considered Unavailable 
Total Deferred Inflows of Resources 


(Dollars in Thousands) 


Deferred Outflows of Resources 

Effective Hedges in a Loss Position 
Loss on Refunding of Debt 
Pension Related 

Total Deferred Outflow s of Resources 

Deferred Inflows of Resources 

Effective Hedges in a Gain Position 
Service Concession Arrangements 
Gain on Refunding of Debt 
Pension Related 

Total Deferred Inflow s of Resources 


Primary Government - Governmental Funds 


General 

Commonwealth 

Transportation 

Federal 

Trust 

Literary 

Nonmajor 

Governmental 

Funds 

Total 

Governmental 

Funds 

$ 

$ 

$ 

$ 

$ 

$ 


$ 912,706 

$ 73,443 

$ 53,787 

$ 19,011 

$ 34,986 

$ 

1,093,933 

$ 912,706 

$ 73,443 

$ 53,787 

$ 19,011 

$ 34,986 

$ 

1,093,933 


Business-type Activities 
Enterprise Funds 





Virginia 

Lottery 

Virginia 

College 

Savings 

Plan Nonmajor 

Total 

Business- 

type 

Activities 

Internal 

Service 

Funds 


Private 

Purpose 

Trust 

Funds 

$ 

$ - $ 

- 

$ 

$ 

$ 

- 

2,756 

1,067 

9,615 

13,438 

5,475 


448 

$ 2,756 

$ 1,067 $ 

9,615 

$ 13,438 

$ 5,475 

$ 

448 

$ 

$ - $ 

- 

$ 

$ 

$ 

- 

4,292 

1,581 

15,498 

21,371 

11,173 


587 

$ 4,292 

$ 1,581 $ 

15,498 

$ 21,371 

$ 11,173 

_$ 

587 


(Continued on next page) 


Commonwealth of Virginia 113 












Fund Statements (continued from previous page) 


(Dollars in Thousands) Component Units 



Virginia 


Virginia 






Public 

Virginia 

College 

Nonmajor 


Total 


School 

Resources 

Building 

Component 

Component 


Authority 

Authority 

Authority 


Units 


Units 

Deferred Outflows of Resources 








Effective Hedges in a Loss Position 

$ 

$ 

$ 

$ 

6,019 

$ 

6,019 

Loss on Refunding of Debt 

151,715 

80,539 

26,191 


185,736 


444,181 

Pension Related 

- 

47 

- 


252,408 


252,455 

Total Deferred Outflow s of Resources 

$ 151,715 

$ 80,586 

$ 26,191 

$ 

444,163 

$ 

702,655 

Deferred Inflows of Resources 








Effective Hedges in a Gain Position 

$ 

$ 

$ 

$ 

4,828 

$ 

4,828 

Service Concession Arrangements 

- 

- 

- 


72,970 


72,970 

Gain on Refunding of Debt 

- 

29,843 

- 


- 


29,843 

Pension Related 

- 

74 

- 


473,065 


473,139 

Total Deferred Inflows of Resources 

$ 

$ 29,917 

$ 

$ 

550,863 

$ 

580,780 


14. DERIVATIVES 

GASB Statement No. 53, Accounting and Financial 
Reporting for Derivative Instruments, requires additional 
reporting and disclosures for derivative instruments. 

Primary Government 

Derivative instruments are financial contracts whose 
values depend on the values of one or more underlying 
assets, reference rates or financial indexes. They 
include futures, forwards, options and swap contracts. 
Some traditional securities, such as structured notes, 
can have derivative-like characteristics. In this case, the 
return may be linked to one or more indexes and asset- 
backed securities, such as collateralized mortgage 
obligations (CMOs), which are sensitive to changes in 
interest rates and pre-payments. Futures, forwards, 
options and swaps generally are not recorded on the 
financial statements, whereas structured notes and 
asset-backed investments generally are recorded. 


Virginia College Savings Plan (Virginia529) 

GASB Statement No. 53 defines stable value 
investment vehicles as synthetic guaranteed investment 
contracts. Stable value funds are invested in a high 
quality, diversified, intermediate term, fixed income 
portfolio that is protected against interest rate volatility 
by wrap or investment contracts from banks and 
insurance companies that guarantee the payment of 
benefits at book value (cost plus accrued interest), 
which enables the entire investment to be carried at its 
book value. The Virginia529 utilizes stable value 
investments in both the Virginia529 prePAID Program 
(major enterprise fund) and Virginia529 inVEST Fund 
(Private Purpose Trust Fund). Virginia529’s stable 
value investments meet the definition of fully benefit- 
responsive synthetic guaranteed investment contracts 
and are reported at contract value. At June 30, 2015, 
Virginia529 had the following stable value investments 
outstanding (dollars in thousands) in the respective 
programs as shown in the table below. 


Stable Value Investments 




Notional 

Effective 


Credit 

June 30, 2015 

June 30, 2014 

Fund 

Wrap Provider 

Amount 

Date 

Maturity Date 

Rate 

Fair Value 

Fair Value 

Enterprise 

American General Life 

$ 36,546 

2/21/2014 

Open ended 

1.5% 

$ 120,898 

$ 114,438 


Voya Retirement & Annuity 

57,932 

12/3/2002 

Open ended 

2.5% 




State Street Bank 

24,048 

5/1/2002 

Open ended 

2.8% 



Private Purpose 

American General Life 

$ 131,667 

1/16/2014 

Open ended 

1.4% 

$ 666,733 

$ 486,917 


Voya Retirement & Annuity 

132,324 

12/3/2002 

Open ended 

2.3% 




Voya Retirement & Annuity 
Prudential Retirement 

131,586 

10/5/2012 

Open ended 

1.3% 




Insurance & Annuity 

132,092 

1/30/2014 

Open ended 

2.1% 




State Street Bank 

132,077 

5/1/2002 

Open ended 

1.9% 




114 Commonwealth of Virginia 













































The following table (dollars in thousands) contains 
information relating to fair value, changes in fair value, 
and notional value for U.S. Treasury Futures Contracts. 


Investment Derivatives - U.S. Treasury Futures Contracts 

Changes in Fair Value _ Fair Value at June 30, 2015 _ 

Notional 

Fund Classification Amount Classification Amount Amount 

Enterprise Revenue $ 95 Investment $ 95 $ 32,391 


Pursuant to its investment management agreement, 
Advent Capital Management, LLC may invest in 
derivatives for hedging purposes or for the use of 
efficient portfolio management. Synthetic positions are 
not allowed and the use of derivatives should not be 
considered as an alpha generator. Advent primarily 
uses forward foreign exchange contracts to hedge the 
value of investments denominated in non-U.S. dollar 
currencies. Credit risk of exchange traded currency 
contracts lies with the clearinghouse of the exchange at 
which the contracts are traded, while credit risk of 
currency contracts traded over the counter lies with the 
counterparty. Counterparty risk exposure is generally 
equal to the unrealized gain on in-the-money contracts. 
The following table (dollars in thousands) contains a 
breakdown of these forward contracts by currency. 


Virginia prePAID Currency Forwards 


Foreign Foreign 

Exchange Exchange 


Currency 

Cost 

Purchases 


Sales 

Market Value 

British Fbund Sterling 

$ 3,795 

$ 

- 

$ 

(3,812) 

$ 

(3,812) 

Canadian Dollar 

2,766 


- 


(2,725) 


(2,725) 

Euro 

23,280 


2,797 


(26,109) 


(23,312) 

Hong Kong Dollar 

3,662 


- 


(3,663) 


(3,663) 

Japanese Yen 

6,207 


- 


(6,150) 


(6,150) 

Singapore Dollar 

1,463 


- 


(1,455) 


(1,455) 

Swiss Franc 

2,270 


- 


(2,268) 


(2,268) 

U.S. Dollar 

(43,443) 


46,248 


(2,804) 


43,444 

Total 

$ 

$ 

49,045 

$ 

(48,986) 

$ 

59 


Virginia Retirement System 

The Virginia Retirement System (the System) is a party, 
directly and indirectly, to various derivative financial 
investments that may or may not appear on the financial 
statements and that are used in the normal course of 
business to enhance returns on investments and 
manage risk exposure to changes in value resulting 
from fluctuations in market conditions. These 
investments may involve, to varying degrees, elements 
of credit and market risk in excess of amounts 
recognized on the financial statements. 


At June 30, 2015, the System had four types of 
derivative financial instruments: futures, currency 
forwards, options and swaps. Futures, currency 
forwards, and options contracts provide the System with 
the opportunity to build passive benchmark positions, 
manage portfolio duration in relation to various 
benchmarks, adjust portfolio yield curve exposure and 
gain market exposure to various indexes in a more 
efficient way and at lower transaction costs. Credit risks 
depend on whether the contracts are exchange-traded 
or exercised over-the-counter. Market risks arise from 
adverse changes in market prices, interest rates and 
foreign exchange rates. 

Futures Contracts 

Futures contracts are contracts to deliver or receive 
securities at a specified future date and at a specified 
price or yield. Futures contracts are traded on organized 
exchanges (exchange-traded) and require an initial 
margin (collateral) in the form of cash or marketable 
securities. The net change in the futures contract value 
is settled daily, in cash, with the exchanges. The net 
gains or losses resulting from the daily settlements are 
included in the System’s financial statements. Holders 
of futures contracts look to the exchange for 
performance under the contract and not to the entity 
holding the offsetting futures position. Accordingly, the 
amount at risk posed by nonperformance of 
counterparties to futures contracts is minimal. The 
notional value of the System’s investment in futures 
contracts at June 30, 2015 and 2014 is shown in the 
following table. 


Futures Contracts 

as of June 30 

(Dollars in Thousands) _ 



2015 

2014 

Cash & Cash Equivalent Derivatives Futures: 
Long 

Short 

$ 

(183,747) 

$ 77,225 

Equity Derivatives Futures: 

Long 

Short 

827,881 

61,465 

(4,295) 

Fixed Income Derivatives Futures: 

Long 

Short 

89,556 

(606,020) 

12,201 

(197,647) 

Total Futures 

$ 127,670 

$ (51,051) 


Commonwealth of Virginia 115 





Currency Forwards 

Currency forwards represent foreign exchange contracts 
and are used by the System to effect settlements and to 
protect the base currency ($US) value of portfolio assets 
denominated in foreign currencies against fluctuations in 
the exchange rates of those currencies. A forward 
foreign currency exchange contract is a commitment to 
purchase or sell a foreign currency at a future date at a 
negotiated price. The credit risk of currency contracts 
that are exchange-traded lies with the clearinghouse of 


the exchange where the contracts are traded. The credit 
risk of currency contracts traded over-the-counter lies 
with the counterparty, and exposure usually is equal to 
the unrealized profit on in-the-money contracts. The 
market risk in foreign currency contracts is related to 
adverse movements in currency exchange rates. 
Information on the System’s currency forwards contracts 
at June 30, 2015 and 2014 is shown in the following 
table. 


Currency Forwards 

as of June 30 


(Dollars in Thousands) 


Currency 

Cost 

Pending 

Foreign 

Exchange 

Purchases 

Pending 

Foreign 

Exchange 

Sales 

Fair Value 

2015 

Fair Value 

2014 

Australian Dollar 

$ (222,668) 

$ 227,230 

$ (449,717) 

$ (222,487) 

$ (314,166) 

Brazil Real 

(57,621) 

1,468 

(58,995) 

(57,527) 

(51,138) 

British Pound Sterling 

(1,041,765) 

208,787 

(1,259,334) 

(1,050,547) 

(951,315) 

Canadian Dollar 

(568,352) 

119,984 

(686,260) 

(566,276) 

(446,996) 

Chilean Peso 

332 

1,942 

(1,623) 

319 

2,632 

Chinese Yuan Renminbi 

- 

- 

- 

- 

12 

Colombian Peso 

(7,933) 

3,438 

(11,252) 

(7,814) 

(5,860) 

Danish Krone 

(94,713) 

29,693 

(124,012) 

(94,319) 

(95,551) 

Euro Currency Unit 

(1,040,144) 

406,950 

(1,444,843) 

(1,037,893) 

(1,401,501) 

Hong Kong Dollar 

(166,459) 

18,780 

(185,240) 

(166,460) 

(211,954) 

Hungarian Forint 

1,138 

7,201 

(6,118) 

1,083 

(4,298) 

Indian Rupee 

19,274 

24,289 

(4,812) 

19,477 

7,245 

Indonesian Rupiah 

1,056 

2,640 

(1,583) 

1,057 

784 

Israeli Shekel 

(69,241) 

2,640 

(72,089) 

(69,449) 

(63,912) 

Japanese Yen 

(1,047,916) 

267,131 

(1,319,534) 

(1,052,403) 

(601,319) 

Malaysian Ringgit 

15,965 

16,582 

(742) 

15,840 

10,721 

Mexican Peso 

11,126 

19,371 

(8,633) 

10,738 

14,488 

New Turkish Lira 

4,437 

11,827 

(7,181) 

4,646 

6,181 

New Zealand Dollar 

(131,860) 

75,524 

(202,775) 

(127,251) 

(22,593) 

Norw egian Krone 

70,018 

202,728 

(134,300) 

68,428 

77,181 

Peruvian Nuevo Sol 

2,345 

3,494 

(1,149) 

2,345 

(727) 

Philippine Peso 

8,823 

8,874 

(141) 

8,733 

(605) 

Polish Zloty 

7,460 

10,044 

(2,766) 

7,278 

11,275 

Romanian Leu 

(1,599) 

1,451 

(3,081) 

(1,630) 

(50) 

Russian Ruble 

(6,358) 

2,983 

(8,964) 

(5,981) 

394 

Singapore Dollar 

(253,653) 

87,127 

(340,189) 

(253,062) 

(191,259) 

South African Rand 

(2,163) 

14,727 

(16,808) 

(2,081) 

(11,809) 

South Korean Won 

(23,121) 

268 

(23,345) 

(23,077) 

2,784 

Swedish Krona 

(157,625) 

79,347 

(237,633) 

(158,286) 

(329,656) 

Sw iss Franc 

(293,533) 

162,102 

(455,104) 

(293,002) 

(611,653) 

Thai Baht 

7,465 

7,924 

(498) 

7,426 

4,585 

U.S. Dollar 

5,037,287 

7,041,074 

(2,003,787) 

5,037,287 

5,162,660 

Total Forwards Subject to Foreign Currency Risk 



$ (4,888) 

$ (15,420) 


116 Commonwealth of Virginia 






Options Contracts 


Options Contracts 

as of June 30 


Options may be either exchange-traded or negotiated 
directly between two counterparties over-the-counter. 
Options grant the holder the right, but not the obligation, 
to purchase (call) or sell (put) a financial instrument at a 
specified price and within a specified period of time from 
the writer of the option. As a purchaser of options, the 
System typically pays a premium at the outset. This 
premium is reflected as an asset on the financial 
statements. The System then retains the right, but not 
the obligation, to exercise the options and purchase the 
underlying financial instrument. Should the option not be 
exercised, it expires worthless and the premium is 
recorded as a loss. 

A writer of options assumes the obligation to deliver or 
receive the underlying financial instrument on exercise 
of the option. Certain option contracts may involve cash 
settlements based on specified indexes such as stock 
indexes. As a writer of options, the System receives a 
premium at the outset. 

This premium is reflected as a liability on the financial 
statements, and the System bears the risk of an 
unfavorable change in the price of the financial 
instrument underlying the option. Information on the 
System’s options balances at June 30, 2015 and 2014 
is shown in the following table. 


(Dollars in Thousands) 


2015 2014 


Cash and Cash Equivalent Options: 





Call 

$ 

(3) 

$ 

(117) 

Put 


14 


(23) 

Equity Options: 





Call 


- 


- 

Put 


- 


- 

Fixed Income Options: 





Call 


(12) 


- 

Put 


(37) 


- 

Swaptions: 





Call 


(12) 


(110) 

Put 


(51) 


(53) 

Total Options 

_$_ 

(101) 

$ 

(303) 


Swap Agreements 

Swaps are negotiated contracts between two 
counterparties for the exchange of payments at certain 
intervals over a predetermined timeframe. The 
payments are based on a notional principal amount and 
calculated using either fixed or floating interest rates or 
total returns from certain instruments or indexes. Swaps 
are used to manage risk and enhance returns. To 
reduce the risk of counterparty nonperformance, the 
System generally requires collateral on any material 
gains from these transactions. During fiscal year 2015, 
the System entered into credit defaults, interest rate and 
total return swaps. Information on the System’s swap 
balances at June 30, 2015 and 2014 is shown in the 
following table. 


Commonwealth of Virginia 117 




Swap Agreements 

as of June 30 


(Dollars in Thousands) 

Counterparty 

Notional 

Amount 

VRS Rate 

Counterparty Rate 

Maturity 

Date 

Buying/ 

Selling 

Protection 

Pay / 

Re ce ive 

Rate 

Fair 

Value 

2015 

Fair 

Value 

2014 

Credit Default Swaps: 









Barclays Bank PLC 

$ 3,900 



6/20/2019 

Selling 

1.0% 

$ 47 

75 

Barclays Bank PLC 

3,700 



12/20/2018 

Buying 

1.0% 

(64) 

(63) 

Barclays Bank PLC 

3,450 



9/20/2020 

Selling 

1.0% 

(53) 


Barclays Bank PLC 

3,400 



6/20/2019 

Selling 

1.0% 

(57) 

38 

Barclays Bank PLC 

2,600 



9/20/2015 

Selling 

1.0% 

(9) 

2 

Barclays Bank PLC 

1,800 



12/20/2018 

Buying 

1.0% 

(33) 

(28) 

Barclays Bank PLC 

1,800 



9/20/2015 

Selling 

1.0% 

(1) 

(5) 

Barclays Bank PLC 

800 



9/20/2015 

Selling 

1.0% 

1 


Barclays Bank PLC 

700 



12/20/2018 

Buying 

1.0% 

(9) 

(9) 

Barclays Bank PLC 

600 



6/20/2019 

Selling 

1.0% 

(4) 

8 

Barclays Bank PLC 

4,381 



3/20/2021 

Selling 

5.0% 


536 

Barclays Bank PLC 

1,400 



6/20/2015 

Selling 

1.0% 


7 

Barclays Bank PLC 

1,369 



3/20/2021 

Selling 

5.0% 


180 

Barclays Bank PLC 

1,100 



12/20/2018 

Buying 

1.0% 


(18) 

Barclays Bank PLC 

1,000 



6/20/2019 

Selling 

1.0% 


(33) 

Barclays Bank PLC 

958 



6/20/2019 

Selling 

5.0% 


76 

Barclays Bank PLC 

548 



9/20/2022 

Selling 

5.0% 


68 

Barclays Bank PLC 

200 



3/20/2019 

Selling 

1.0% 


(6) 

Credit Suisse Group AG 

3,400 



12/20/2018 

Buying 

1.0% 

(52) 

(93) 

Credit Suisse Group AG 

1,300 



6/20/2020 

Selling 

5.0% 

35 


Credit Suisse Group AG 

800 



12/20/2016 

Selling 

1.0% 

8 

14 

Credit Suisse Group AG 

225 



12/20/2015 

Selling 

5.0% 

3 


Credit Suisse Group AG 

200 



12/20/2016 

Selling 

1.0% 

2 

2 

Credit Suisse Group AG 

150 



12/20/2016 

Selling 

5.0% 

5 


Credit Suisse Group AG 

6,250 



12/20/2016 

Buying 

1.0% 


(111) 

Credit Suisse Group AG 

1,000 



12/20/2018 

Selling 

1.0% 


16 

Credit Suisse Group AG 

500 



12/20/2018 

Buying 

5.0% 


(96) 

Deutsche Bank AG 

8,875 



6/20/2019 

Selling 

1.0% 

(421) 

(341) 

Deutsche Bank AG 

5,300 



12/20/2018 

Selling 

1.0% 

24 

64 

Deutsche Bank AG 

2,900 



6/20/2019 

Selling 

1.0% 


25 

Deutsche Bank AG 

2,600 



9/20/2015 

Selling 

1.0% 

(9) 

2 

Deutsche Bank AG 

1,400 



9/20/2015 

Selling 

1.0% 

1 

11 

Deutsche Bank AG 

1,200 



12/20/2016 

Selling 

1.0% 

12 

21 

Deutsche Bank AG 

800 



9/20/2015 

Selling 

1.0% 

1 


Deutsche Bank AG 

700 



6/20/2018 

Selling 

1.0% 

(21) 

(3) 

Deutsche Bank AG 

400 



3/20/2020 

Selling 

1.0% 

(4) 


Deutsche Bank AG 

400 



3/20/2016 

Selling 

1.0% 



Deutsche Bank AG 

6,000 



12/20/2018 

Selling 

1.0% 


(63) 

Deutsche Bank AG 

3,000 



9/20/2014 

Selling 

1.0% 



Deutsche Bank AG 

3,000 



9/20/2014 

Selling 

1.0% 


(2) 

Deutsche Bank AG 

2,300 



9/20/2014 

Selling 

1.0% 


2 

Deutsche Bank AG 

1,600 



3/20/2021 

Selling 

5.0% 


135 

Deutsche Bank AG 

1,500 



3/20/2021 

Selling 

5.0% 


125 

Deutsche Bank AG 

1,100 



12/20/2018 

Selling 

1.0% 


7 

Deutsche Bank AG 

1,100 



6/20/2019 

Buying 

5.0% 


(169) 

Deutsche Bank AG 

700 



12/20/2018 

Buying 

5.0% 


(134) 

Deutsche Bank AG 

700 



6/20/2015 

Selling 

1.0% 


5 

Deutsche Bank AG 

500 



9/20/2014 

Selling 

1.0% 


1 

Deutsche Bank AG 

300 



9/20/2014 

Buying 

10.0% 


1 

Goldman Sachs Group Inc 

6,600 



6/20/2019 

Selling 

1.0% 

(110) 

75 

Goldman Sachs Group Inc 

5,800 



9/20/2019 

Selling 

1.0% 

(301) 


Goldman Sachs Group Inc 

5,225 



3/20/2020 

Selling 

5.0% 

(37) 


Goldman Sachs Group Inc 

5,200 



6/20/2020 

Selling 

1.0% 

(362) 


Goldman Sachs Group Inc 

5,200 



9/20/2015 

Selling 

1.0% 

2 

41 

Goldman Sachs Group Inc 

5,000 



12/20/2018 

Selling 

1.0% 

(99) 

30 

Goldman Sachs Group Inc 

4,900 



6/20/2020 

Selling 

5.0% 

(67) 


Goldman Sachs Group Inc 

3,400 



6/20/2019 

Selling 

1.0% 

(22) 

46 

Goldman Sachs Group Inc 

2,300 



3/20/2019 

Selling 

5.0% 

263 

319 

Goldman Sachs Group Inc 

2,100 



12/20/2019 

Selling 

5.0% 

83 


Goldman Sachs Group Inc 

2,100 



12/20/2019 

Selling 

1.0% 

(258) 


Goldman Sachs Group Inc 

1,950 



9/20/2015 

Selling 

1.0% 

(799) 


Goldman Sachs Group Inc 

1,050 



12/20/2020 

Selling 

1.0% 

(33) 

(60) 

Goldman Sachs Group Inc 

900 



3/20/2020 

Buying 

1.0% 

88 


Goldman Sachs Group Inc 

700 



3/20/2016 

Selling 

1.0% 

1 


Goldman Sachs Group Inc 

650 



6/20/2019 

Buying 

1.0% 

(16) 

(57) 

Goldman Sachs Group Inc 

650 



6/20/2020 

Selling 

5.0% 

46 


Goldman Sachs Group Inc 

300 



12/20/2018 

Selling 

1.0% 

(3) 

4 

Goldman Sachs Group Inc 

9,600 



9/20/2014 

Selling 

1.0% 

- 

16 

Goldman Sachs Group Inc 

5,100 



6/20/2019 

Selling 

1.0% 

- 

20 

Goldman Sachs Group Inc 

3,150 



12/20/2016 

Buying 

1.0% 


(58) 

Goldman Sachs Group Inc 

1,300 



3/20/2018 

Selling 

5.0% 


(35) 

Goldman Sachs Group Inc 

1,000 



3/20/2021 

Selling 

5.0% 


83 

Goldman Sachs Group Inc 

800 



12/20/2018 

Buying 

1.0% 


(12) 

Goldman Sachs Group Inc 

600 



3/20/2015 

Selling 

1.0% 


3 

Goldman Sachs Group Inc 

400 



3/20/2015 

Selling 

1.0% 


(2) 

Goldman Sachs Group Inc 

100 



9/20/2018 

Selling 

5.0% 

- 

13 

HSBC Securities Inc 

5,300 



9/20/2020 

Selling 

1.0% 

(81) 


HSBC Securities Inc 

2,100 



3/20/2020 

Selling 

1.0% 

(21) 


HSBC Securities Inc 

1,500 



9/20/2019 

Selling 

1.0% 

(78) 


HSBC Securities Inc 

1,300 



9/20/2015 

Selling 

1.0% 


10 

HSBC Securities Inc 

1,100 



6/20/2019 

Selling 

1.0% 

(7) 

15 

HSBC Securities Inc 

1,000 



6/20/2019 

Selling 

1.0% 

(17) 

11 

HSBC Securities Inc 

900 



3/20/2019 

Selling 

1.0% 

(27) 

(26) 


Continued on next page 


118 Commonwealth of Virginia 







Swap Agreements 

as of June 30 

(Continued from previous page) 


(Dollars in Thousands) 






Buying/ 

Pay / 

Fair 

Fair 


Notional 



Maturity 

Selling 

Re ce ive 

Value 

Value 

Counterparty 

Amount 

VRS Rate 

Counterparty Rate 

Date 

Protection 

Rate 

2015 

2014 

Credit Default Swaps (continued) : 









HSBC Securities Inc 

700 



6/20/2018 

Selling 

1.0% 

(21) 

(3) 

HSBC Securities Inc 

400 



3/20/2019 

Selling 

1.0% 

(12) 

(11) 

HSBC Securities Inc 

400 



6/20/2019 

Selling 

1.0% 

(11) 

(33) 

HSBC Securities Inc 

200 



3/20/2023 

Selling 

1.0% 

(19) 

(18) 

HSBC Securities Inc 

100 



3/20/2023 

Selling 

1.0% 

(10) 

(9) 

HSBC Securities Inc 

6,000 



9/20/2014 

Selling 

1.0% 


5 

HSBC Securities Inc 

4,600 



9/20/2014 

Selling 

1.0% 


2 

HSBC Securities Inc 

1,900 



3/20/2015 

Selling 

1.0% 


10 

HSBC Securities Inc 

1,500 



3/20/2019 

Selling 

1.0% 


(44) 

HSBC Securities Inc 

1,400 



12/20/2018 

Selling 

1.0% 


23 

HSBC Securities Inc 

844 



6/20/2019 

Selling 

1.0% 


3 

HSBC Securities Inc 

756 



6/20/2019 

Selling 

1.0% 


3 

Intercontinental Exchange Holdings 

26,159 



6/20/2020 

Selling 

5.0% 

1,633 


Intercontinental Exchange Holdings 

18,300 



6/20/2020 

Selling 

1.0% 

(1,685) 


Intercontinental Exchange Holdings 

5,000 



6/20/2020 

Selling 

5.0% 

346 


Intercontinental Exchange Holdings 

17,700 



6/20/2019 

Selling 

5.0% 


2,101 

Totals-Credit Default Swaps 

269,140 






(2,232) 

2,712 

Interest Rate Swaps: 









Banque Nationale de Paris 

89,000 

Brazil Cetip Interbank Deposit 

13.5% 

1/2/2017 



(155) 


Barclays PLC 

1,481 

Brazil Cetip Interbank Deposit 

13.8% 

1/4/2016 



(2) 


Barclays FLC 

1,288 

Brazil Cetip Interbank Deposit 

12.4% 

1/2/2018 



(17) 


Barclays FLC 

733 

3-month Johannesburg (JIBAR) 

8.0% 

12/18/2023 



(8) 

(9) 

Barclays FLC 

650 

Mexico Interbank 28-day Index 

5.0% 

2/26/2018 



9 


Barclays PLC 

404 

3-month Johannesburg (JIBAR) 

7.5% 

12/17/2019 



(2) 


Barclays FLC 

544 

Brazil Cetip Interbank Deposit 

10.63% CDI 

1/2/2017 




(5) 

Barclays FLC 

136 

Brazil Cetip Interbank Deposit 

11.5% 

1/2/2017 




(1) 

BlackRock Inc 

786 

Mexico Interbank 28-day Index 

5.0% 

2/26/2018 




16 

Chicago Mercantile Exchange Inc 

183,813 

3-month LIBOR 

1.5% 

9/15/2017 



1,663 


Chicago Mercantile Exchange Inc 

140,213 

3-month LIBOR 

1.5% 

9/15/2017 



1,268 


Chicago Mercantile Exchange Inc 

12,813 

6-month EURIBOR+100 bps 

0.8% 

9/16/2025 



571 


Chicago Mercantile Exchange Inc 

10,397 

3.0% 

3-month LIBOR 

9/15/2045 



(72) 


Chicago Mercantile Exchange Inc 

8,300 

1.3% 

3-month LIBOR 

5/6/2017 



(12) 


Chicago Mercantile Exchange Inc 

7,400 

2.0% 

3-month LIBOR 

12/16/2019 



(56) 


Chicago Mercantile Exchange Inc 

6,290 

Mexico Interbank 28-day Index 

5.6% 

7/7/2021 



(16) 


Chicago Mercantile Exchange Inc 

5,209 

1.0% 

6-month LIBOR - Japanese Yen 

9/18/2023 



(208) 

(210) 

Chicago Mercantile Exchange Inc 

4,246 

2.0% 

6-month LIBOR - British Ftound 

9/16/2025 



82 


Chicago Mercantile Exchange Inc 

3,617 

3.0% 

6-month LIBOR - British Ftaund 

9/17/2024 



(274) 

(56) 

Chicago Mercantile Exchange Inc 

1,785 

Mexico Interbank 28-day Index 
Mexico Interbank 28-day Index + 

5.8% 

6/5/2023 



(41) 


Chicago Mercantile Exchange Inc 

1,651 

100 bps 

6.2% 

1/3/2035 



(168) 


Chicago Mercantile Exchange Inc 

1,553 

1.0% 

6-month LIBOR - Japanese Yen 

9/20/2024 



(10) 


Chicago Mercantile Exchange Inc 

1,262 

Mexico Interbank 28-day Index 

5.6% 

11/10/2021 



(13) 


Chicago Mercantile Exchange Inc 

1,114 

6-month EURIBOR 

0.8% 

9/16/2025 



50 


Chicago Mercantile Exchange Inc 

1,114 

1.5% 

6-month EURIBOR 

3/16/2046 



68 


Chicago Mercantile Exchange Inc 

196 

0.5% 

6-month LIBOR - Japanese Yen 

9/17/2021 



(2) 




Mexico Interbank 28-day Index + 







Chicago Mercantile Exchange Inc 

134 

100 bps 

5.5% 

2/22/2023 



(5) 


Chicago Mercantile Exchange Inc 

49,000 

2.0% 

3-month LIBOR 

6/18/2019 



- 

(742) 

Chicago Mercantile Exchange Inc 

37,400 

3-month LIBOR 

3.0% 

6/18/2024 




1,314 

Chicago Mercantile Exchange Inc 

8,010 

2.0% 

6-month EURIBOR 

9/17/2024 




(388) 

Chicago Mercantile Exchange Inc 

4,100 

3.8% 

3-month LIBOR 

6/18/2044 



- 

(361) 

Chicago Mercantile Exchange Inc 

1,780 

0.4% 

3-month EURIBOR 

3/14/2015 




(3) 

Chicago Mercantile Exchange Inc 

1,369 

6-month EURIBOR 

1.5% 

3/19/2019 




56 

Credit Suisse Group AG 

3,058 

Brazil Cetip Interbank Deposit 

12.2% 

1/4/2021 



(5) 


Deutsche Bank AG 

13,907 

Brazil Cetip Interbank Deposit 

12.8% 

1/4/2021 



148 


Deutsche Bank AG 

11,267 

Brazil Cetip Interbank Deposit 

13.9% 

1/2/2017 



(2) 


Deutsche Bank AG 

6,664 

10.9% 

Brazil Cetip Interbank Deposit 

1/2/2017 



202 


Deutsche Bank AG 

6,503 

12.3% 

Brazil Cetip Interbank [Deposit 

1/2/2017 



45 


Deutsche Bank AG 

4,603 

Brazil Cetip Interbank Deposit 

11.7% 

1/4/2021 



(97) 


Deutsche Bank AG 

1,550 

Colombia IBR Overnight Interbank 

5.3% 

8/29/2019 



10 


Deutsche Bank AG 

1,497 

Brazil Cetip Interbank Deposit 

12.9% 

4/1/2021 



34 


Deutsche Bank AG 

1,299 

Klibor Interbank Offered Rate 

3.3% 

4/19/2018 



(13) 

(30) 

Deutsche Bank AG 

1,217 

Mexico Interbank 28-day Index 

5.0% 

10/10/2019 



(6) 


Deutsche Bank AG 

915 

Colombia IBR Overnight Interbank 

6.1% 

10/16/2024 



(6) 


Deutsche Bank AG 

701 

5.3% 

Mexican Interbank Equlibrium 

9/6/2019 



4 

8 

Deutsche Bank AG 

415 

Brazil Cetip Interbank Deposit 

12.4% 

1/2/2018 



(6) 


Deutsche Bank AG 

338 

6-month LIBOR-Thai Baht 

2.6% 

1/29/2025 



(5) 


Deutsche Bank AG 

231 

Colombia IBR Overnight Interbank 

5.3% 

3/17/2020 



1 


Deutsche Bank AG 

148 

6-month LIBOR-Thai Baht 

3.4% 

1/15/2021 



9 

2 

Deutsche Bank AG 

148 

6-month LIBOR-Thai Baht 

3.4% 

1/21/2021 



9 

(2) 

Deutsche Bank AG 

59 

6-month LIBOR-Thai Baht 

3.4% 

11/19/2018 



3 

1 

Deutsche Bank AG 

30 

6-month LIBOR-Thai Baht 

3.4% 

11/14/2018 



1 

1 

Deutsche Bank AG 

18 

6-month LIBOR-Thai Baht 

2.2% 

1/29/2020 





Deutsche Bank AG 

1,406 

Brazil Cetip Interbank Deposit 

10.6% 

1/2/2017 




(13) 

Goldman Sachs Group Inc 

4,058 

3-month New Zeland Bank Bill 

5.0% 

12/17/2024 



360 


Goldman Sachs Group Inc 

404 

3-month Johannesburg (JIBAR) 

7.5% 

12/17/2019 



(2) 


HSBC Securities Inc 

15,870 

13.8% 

Brazil Cetip Interbank Deposit 

1/2/2017 



12 


HSBC Securities Inc 

6,535 

13.9% 

Brazil Cetip Interbank Deposit 

1/6/2017 



(1) 


HSBC Securities Inc 

4,893 

12.2% 

Brazil Cetip Interbank Deposit 

1/4/2021 



(8) 


HSBC Securities Inc 

2,189 

Brazil Cetip Interbank Deposit 

13.8% 

4/1/2016 



(7) 


HSBC Securities Inc 

585 

3-month Johannesburg (JIBAR) 

7.5% 

12/17/2024 



(29) 


HSBC Securities Inc 

579 

Brazil Cetip Interbank Deposit 

12.8% 

1/4/2021 



6 


HSBC Securities Inc 

483 

Brazil Cetip Interbank Deposit 

11.5% 

1/4/2021 



(14) 


HSBC Securities Inc 

477 

6-month LIBOR-Thai Baht 

2.5% 

1/28/2025 



(10) 


HSBC Securities Inc 

442 

Colombia IBR Overnight Interbank 

6.2% 

3/21/2024 



3 

4 


Continued on next page 


Commonwealth of Virginia 119 





Swap Agreements 

as of June 30 

(Continued from previous page) 


(Dollars in Thousands) 






Buying/ 

Pay / 

Fair 

Fair 


Notional 



Maturity 

Selling 

Re ce ive 

Value 

Value 

Counterparty 

Amount 

VRS Rate 

Counterparty Rate 

Date 

Protection 

Rate 

2015 

2014 

Interest Rate Swaps (continued) : 









HSBC Securities Inc 

382 

Mexico Interbank 28-day Index 

5.5% 

2/22/2023 



(13) 

(19) 

HSBC Securities Inc 

290 

Brazil Cetip Interbank Deposit 

12.1% 

1/4/2021 



(2) 

13 

HSBC Securities Inc 

186 

6-month Warsaw Interbank 

2.8% 

12/17/2024 



(3) 


HSBC Securities Inc 

150 

6.4% 

Colombia IBR Overnight Interbank 

7/2/2025 



(1) 


HSBC Securities Inc 

110 

6-month LIBOR-Thai Baht 

2.1% 

1/28/2020 



2 


HSBC Securities Inc 

2,158 

Mexico Interbank 28-day Index 

5.8% 

6/5/2023 




(32) 

UBS AG 

11,106 

Brazil Cetip Interbank Deposit 

12.6% 

1/4/2021 



125 

326 

UBS AG 

8,853 

10.9% 

Brazil Cetip Interbank Deposit 

1/2/2017 



268 


UBS AG 

3,509 

11.7% 

Brazil Cetip Interbank Deposit 

1/4/2021 



74 


UBS AG 

2,801 

Brazil Cetip Interbank Deposit 

11.6% 

1/2/2018 



(83) 


UBS AG 

1,370 

Mexico Interbank 28-day Index 

5.6% 

10/11/2021 



(9) 


UBS AG 

966 

Brazil Cetip Interbank Deposit 

9.1% 

1/2/2017 



(66) 

(48) 

UBS AG 

191 

5.3% 

Mexican Interbank Equlibrium 

9/6/2019 



1 

2 

UBS AG 

6,577 

Brazil Cetip Interbank Deposit 

12.4% 

1/2/2018 



(88) 


UBS AG 

11,169 

Mexico Interbank 28-day Index 

5.6% 

10/11/2021 



- 

433 

Total Interest Rate Swaps 

730,095 






3,491 

257 

Return Swaps: 









Goldman Sachs Group Inc 

186,653 

3-month LIBOR + 42 bps 

MSCIACWI 

7/16/2015 



(5,306) 


Goldman Sachs Group Inc 

226,219 

3-month LIBOR + 42 bps 

MSCI ACWI 

7/16/2015 



(6,430) 


Goldman Sachs Group Inc 

150,616 

3-month LIBOR + 42 bps 

MSCI ACWI IMI 

7/16/2015 



(4,281) 


Goldman Sachs Group Inc 

150,120 

3-month LIBOR + 42 bps 

MSCI ACWI IMI 

7/16/2015 



(2,832) 


Goldman Sachs Group Inc 

142,767 

3-month LIBOR + 42 bps 

MSCI [Daily Small Cap 

8/20/2014 



- 

11,702 

Goldman Sachs Group Inc 

32,278 

3-month LIBOR 

Kuraray Co. Ltd. 

8/20/2014 



- 

(471) 

Goldman Sachs Group Inc 

5,533 

3-month LIBOR 

Shionogi Co. Ltd. 

8/20/2014 



- 

(727) 

Goldman Sachs Group Inc 

5,321 

3-month LIBOR 

MSAD Insurance Group 

8/20/2014 



- 

(193) 

Goldman Sachs Group Inc 

5,085 

3-month LIBOR 

Canon Inc. 

8/20/2014 



- 

65 

Goldman Sachs Group Inc 

4,684 

3-month LIBOR 

Itochu Corp. 

8/20/2014 



- 

(555) 

Goldman Sachs Group Inc 

4,638 

3-month LIBOR 

Trend Micro Inc. 

8/20/2014 



- 

(253) 

Goldman Sachs Group Inc 

4,582 

3-month LIBOR 

Takeda Pharmaceutical 

8/20/2014 



- 

(210) 

Goldman Sachs Group Inc 

4,491 

3-month LIBOR 

Daiichi Sankyo Co. 

8/20/2014 



- 

(500) 

Goldman Sachs Group Inc 

4,428 

3-month LIBOR 

Dai Nippon Ranting 

8/20/2014 



- 

(375) 

Goldman Sachs Group Inc 

4,409 

3-month LIBOR 

Asahi Glass Co. Ltd. 

8/20/2014 



- 

(240) 

Goldman Sachs Group Inc 

4,325 

3-month LIBOR 

Esai Co. Ltd. 

8/20/2014 



- 

(159) 

Goldman Sachs Group Inc 

4,166 

3-month LIBOR 

Mitsui Co. Ltd. 

8/20/2014 



- 

(319) 

Goldman Sachs Group Inc 

4,166 

3-month LIBOR 

NKSJ Holdings Inc. 

8/20/2014 



- 

(142) 

Goldman Sachs Group Inc 

4,164 

3-month LIBOR 

Sumitomo Corp. 

8/20/2014 



- 

(256) 

Goldman Sachs Group Inc 

4,031 

3-month LIBOR 

Shiseido Co. Ltd. 

8/20/2014 



- 

(392) 

Goldman Sachs Group Inc 

3,878 

3-month LIBOR 

Mitsubishi Corp. 

8/20/2014 



- 

(282) 

Goldman Sachs Group Inc 

3,795 

3-month LIBOR 

Fast Retailing Co. Ltd. 

8/20/2014 



- 

(1,577) 

Goldman Sachs Group Inc 

3,703 

3-month LIBOR 

Sharp Corp. 

8/20/2014 



- 

(391) 

Goldman Sachs Group Inc 

3,001 

3-month LIBOR 

Nippon Telegraph 

8/20/2014 



- 

(351) 

Goldman Sachs Group Inc 

2,746 

3-month LIBOR 

Marubeni Corp. 

8/20/2014 




(250) 

Goldman Sachs Group Inc 

2,741 

3-month LIBOR 

JX Holdings Inc. 

8/20/2014 



- 

(197) 

Goldman Sachs Group Inc 

2,676 

3-month LIBOR 

Alps Bectric Co. Ltd. 

8/20/2014 



- 

(724) 

Goldman Sachs Group Inc 

2,290 

3-month LIBOR 

Sumitomo Mitsui Trust 

8/20/2014 



- 

(272) 

Goldman Sachs Group Inc 

2,274 

3-month LIBOR 

Nippon Bectric Glass 

8/20/2014 



- 

(410) 

Goldman Sachs Group Inc 

2,241 

3-month LIBOR 

Sumitomo Mitsui Financial 

8/20/2014 



- 

(224) 

Goldman Sachs Group Inc 

2,211 

3-month LIBOR 

Show a Shell Sekiyu 

8/20/2014 



- 

(384) 

Goldman Sachs Group Inc 

2,013 

3-month LIBOR 

Oji Paper Co. Ltd. 

8/20/2014 



- 

10 

Goldman Sachs Group Inc 

1,905 

3-month LIBOR 

Sumitomo Chemical Co. 

8/20/2014 



- 

(66) 

Goldman Sachs Group Inc 

1,693 

3-month LIBOR 

NTN Corp. 

8/20/2014 



- 

(495) 

Goldman Sachs Group Inc 

1,634 

3-month LIBOR 

Aozora Bank Ltd. 

8/20/2014 



- 

(174) 

Goldman Sachs Group Inc 

1,409 

3-month LIBOR 

Denki Kagaku Kogyo 

8/20/2014 



- 

(127) 

Goldman Sachs Group Inc 

1,075 

3-month LIBOR 

Mizuho Financial Group 

8/20/2014 



- 

(55) 

Goldman Sachs Group Inc 

1,054 

3-month LIBOR 

NTT Docomo Inc. 

8/20/2014 



- 

(57) 

Goldman Sachs Group Inc 

908 

3-month LIBOR 

Mitsui Engineering & Shipbuilding 

8/20/2014 



- 

(212) 

Goldman Sachs Group Inc 

799 

3-month LIBOR 

Chubu Bectric Rawer 

8/20/2014 



- 

(55) 

Goldman Sachs Group Inc 

790 

3-month LIBOR 

Toyobo Co. Ltd. 

8/20/2014 



- 

(64) 

Goldman Sachs Group Inc 

753 

3-month LIBOR 

Kansai Bectric Paw er 

8/20/2014 



- 

(8) 

Goldman Sachs Group Inc 

513 

3-month LIBOR 

Nippon Suisan Kaisha 

8/20/2014 



- 

(137) 

Goldman Sachs Group Inc 

2 

3-month LIBOR + 42 bps 

MSCI ACWI 

9/24/2014 



- 


Total Return Swaps 

998,780 






(18,849) 

473 

Total Swaps 

$ 1,998,015 






$ (17,590) 

$ 3,442 


120 Commonwealth of Virginia 





Additional information is available in the System’s 
separately issued financial statements, which may be 
obtained from the Virginia Retirement System at P.O. 
Box 2500, Richmond, Virginia 23218-2500. 

Component Units 

Investment Derivative Instruments 

The Virginia Housing Development Authority (major) 
had a forward sales contract investment derivative with 
a $239.1 million notional value and a fair value of 
negative $224,949 as of June 30, 2015. This amount is 
reported as part of investment losses and other 
liabilities. 

Hedging Derivative Instruments 

In April 2015, the University of Virginia (UVA) 
(nonmajor) refunded the Series 2003A bonds and the 
commercial paper associated with the fixed-payer 
interest rate swaps which terminated hedge accounting. 
The fixed-payer interest rate swaps are no longer 
effective hedges. At the time of termination, the 
accumulated change in fair value of the swaps was 
negative $38.2 million and was included in the 
calculation of the deferred loss on refunding. At June 
30, 2015, the negative fair value of the swaps of $28.9 
million is included in other liabilities and the change in 
fair value of $9.3 million was reported as investment 
earnings in the accompanying financial statements. 
During fiscal year 2015, UVA established two fixed- 
receiver interest rate swaps with a total notional amount 
of $128.0 million to provide a hedge against fixed 
interest rates on Series 2015B bonds and these are 
considered effective hedges. At June 30, 2015, the 
negative fair value of the fixed-receiver interest rate 
swaps of $648,468 is included in other liabilities and the 
cumulative change in fair value of these swaps of 
$648,468 is included in deferred outflows of resources 
in the accompanying financial statements. 

At June 30, 2015, the Virginia Commonwealth 
University (VCU) (nonmajor) had two fixed-payer 
interest rate swaps with a notional amount of $60.3 
million, which declines to $4.8 million at the termination 
date of November 1,2030. The swaps are used as cash 
flow hedges by VCU in order to provide a hedge against 
changes in interest rates on variable rate Series 2012A 
and 2012B bonds. The Series 2012A and 2012B bonds 
refunded prior Series 2006A and 2006B bonds that 
resulted in the termination of the prior hedging 
relationship between the interest rate swaps and the 
2006A and 2006B bonds. At the time of the refunding in 
November 2012, the accumulated change in fair value 
of the interest rate swaps was negative $14.1 million 
and was included in the calculation of the deferred loss 
on refunding. There was also a reestablishment of 
hedge accounting on the new debt. At June 30, 2015, 
the negative fair value of VCU’s swaps of $9.3 million is 
included in other liabilities and the cumulative change in 
fair value of VCU’s swaps of $4.8 million is included in 
deferred inflows of resources in the accompanying 
financial statements. 


At June 30, 2015, the Medical College of Virginia 
Hospitals (MCVH), which is a division of the Virginia 
Commonwealth University Health System Authority (a 
blended component unit of VCU), had two interest rate 
swap agreements with a notional amount of $119.9 
million and another interest rate swap agreement with a 
notional amount of $68.2 million. The swaps are used 
as cash flow hedges by MCVH in order to provide a 
hedge against changes in interest rates on variable rate 
Series 2013A and 2013B bonds. The Series 2013A and 
2013B bonds refunded prior Series 2005 and 2008 
bonds that resulted in the termination of the prior 
hedging relationship between the interest rate swaps 
and the Series 2005 and 2008 bonds. At the time of the 
refunding in June 2013, the accumulated change in fair 
value of the interest rate swaps was negative $42.1 
million and was included in the calculation of the 
deferred loss on refunding. There was also a 
reestablishment of hedge accounting on the new debt. 
At June 30, 2015, the negative fair value of MCVH’s 
swaps of $47.5 million is included in other liabilities and 
the cumulative change in fair value of MCVH’s swaps of 
$5.4 million is included in deferred outflows of resources 
in the accompanying financial statements. 

The following schedule shows debt service 
requirements of UVA, VCU, and MCVH bonds payable 
debt of $355.6 million and net receipts/payments on 
associated derivative instruments. These amounts 
assume that current variable and reference rates on the 
hedging instruments will remain the same for their 
terms. As these rates vary, net receipt/payments on the 
hedging instruments will vary. Additional information is 
available in the individually published financial 
statements of the higher education institution. 


Derivative 

Instruments, 


Maturity 


Principal 


Interest 


Net 


Total 

2016 

$ 

4,995,000 

$ 

5,981,399 

$ 

7,559,547 

$ 

18,535,946 

2017 


5,700,000 


6,891,093 


7,388,913 


19,980,006 

2018 


5,930,000 


6,845,270 


7,194,564 


19,969,834 

2019 


6,095,000 


6,798,064 


6,992,318 


19,885,382 

2020 


6,395,000 


6,748,600 


6,784,587 


19,928,187 

2021-2025 


146,940,000 


14,958,361 


35,214,068 


197,112,429 

2026-2030 


66,500,000 


5,020,433 


27,712,254 


99,232,687 

2031-2035 


67,630,000 


2,352,743 


15,911,642 


85,894,385 

2036-2040 


45,370,000 


297,314 


3,414,115 


49,081,429 

Total 

$ 

355,555,000 

$ 

55,893,277 

$ 

118,172,008 

$ 

529,620,285 


Various foundations of higher education institutions 
have derivative instruments. The foundations follow 
FASB rather than GASB reporting requirements. 
Disclosures for the foundations’ derivatives can be 
found in the individually published financial statements 
of the foundations. 


Commonwealth of Virginia 121 





15. RETIREMENT AND PENSION SYSTEMS 

A separately issued financial report that includes 
financial statements and required supplemental 
information for each of the individual plans discussed 
below is publicly available. Copies may be obtained by 
writing to Virginia Retirement System, P. O. Box 2500, 
Richmond, Virginia 23218-2500. 

A. Administration 

The Virginia Retirement System (the System) is an 
independent agency of the Commonwealth that 
administers pension plans, other employee benefit 
plans, and other funds for Commonwealth 
employees, teachers, political subdivision 
employees, and other qualifying employees. The 
Board of Trustees is responsible for the general 
administration and operation of the plans. The 
Board consists of five members appointed by the 
Governor and four members appointed by the Joint 
Rules Committee, all subject to confirmation by the 
General Assembly. The Board of Trustees 
appoints a director to serve as the chief 
administrative officer of the System and a chief 
investment officer to direct, manage, and administer 
the investment of the System’s funds. The Board of 
Trustees has appointed BNY Mellon as the 
custodian of designated assets of the System. 

The System administers four pension trust funds: 
the Virginia Retirement System (VRS); State Police 
Officers’ Retirement System (SPORS); Virginia Law 
Officers’ Retirement System (VaLORS); and the 
Judicial Retirement System (JRS). In addition to 
the pension plans, the System administers five 
Other Employee Benefit Plans: Group Life 
Insurance Fund; Retiree Health Insurance Credit 
Fund; the Virginia Sickness and Disability Program 
(VSDP); the Line of Duty Act Trust Fund; and the 
Virginia Local Disability Program (VLDP). 

B. Summary of Significant Accounting Policies 
(Virginia Retirement System) 

Basis of Accounting 

The financial statements of the pension and other 
employee benefit trust funds are prepared using the 
flow of economic resources measurement focus 
and the accrual basis of accounting consistent with 
the plans. Employee and employer contributions 
are recognized when due, pursuant to formal 
commitments, as well as statutory or contractual 
requirements. Investment income is recognized as 
earned by the plans. Benefits and refunds are 
recognized when due and payable in accordance 
with the terms of the plans. 

Method Used to Value Investments 

Investments are reported at fair value as 
determined by the System’s master custodian, BNY 
Mellon, from its Global Pricing System. This pricing 
system assigns a price source, based on asset type 
and the vendor pricing products to which the master 
custodian subscribes, for every security held 
immediately following its acquisition. Prices 
supplied by these sources are monitored on a daily 
basis by the master custodian. 


When a pricing source is unable to provide a price, 
quotes are sought from major investment brokers 
and market-making dealers; or internal calculations 
are applied if feasible. As a last resort, the master 
custodian will contact investment managers for a 
price. The master custodian prices commingled 
funds, partnerships, and real estate assets from 
statements received from the funds, partnerships, 
or investment managers. 

The pricing sources utilized by the master 
custodian provide daily prices for equity securities, 
corporate, government and mortgage-backed fixed 
income securities, private placement securities, 
futures and options on futures, open-ended funds, 
and foreign exchange rates. Depending on the 
vendor, collateralized mortgage obligations 
(CMOs), adjustable rate mortgages (ARMs) and 
asset-backed securities are priced daily, weekly or 
twice a month and at month-end. Municipal fixed 
income securities and options on 
Treasury/Government National Mortgage 
Association securities are priced at month-end. 

The System’s investment guidelines for each 
specific portfolio limits investments in any corporate 
entity to no more than 5.0 percent of the market 
value of the account for both the internally and 
externally managed portfolios. There is no 
concentration of investments in any one 
organization that represents 5.0 percent or more of 
plan net position available for benefits. 

C. Plan Description 

Retirement Plans 

The Virginia Retirement System is a qualified 
governmental retirement plan that administers three 
retirement benefit structures: Plan 1, Plan 2, and 
Hybrid Plan, for state employees, public school 
board employees, employees of participating 
political subdivisions, and other qualifying 
employees. VRS is a combination of mixed-agent 
and cost-sharing, multiple-employer retirement 
plans. Each plan’s accumulated assets may legally 
be used to pay all the plan benefits provided to any 
of the plan’s members, retirees, and beneficiaries. 
Contributions for fiscal year 2015 were $3.1 billion 
with a reserve balance available for benefits of 
$64.0 billion. At June 30, 2015, the VRS had 827 
contributing employers. 

Single-employer Retirement Plans 

The Commonwealth also administers the following 
single-employer retirement plans and benefit 
structures: 

• State Police Officers’ Retirement System 
(SPORS) - Plan 1 and Plan 2 

• Virginia Law Officers’ Retirement System 
(VaLORS) - Plan 1 and Plan 2 

• Judicial Retirement System (JRS) - Plan 1, 
Plan 2, and Hybrid Plan 

All full-time, salaried permanent employees of VRS 
participating employers are automatically covered 
under VRS, SPORS, VaLORS or JRS with the 


122 Commonwealth of Virginia 




following exceptions: (1) certain full-time faculty and 
administrative staff of public colleges and 
universities; and (2) eligible classified employees of 
the two state teaching hospitals. These employees 
have the option to elect not to participate in the 
Virginia Retirement System. Benefit provisions and 
all other requirements are established by Title 51.1 
of the Code of Virginia, as amended. 

Benefits vest for all plans after five years of service 
credit. Vested VRS members in the VRS Plan 1 
are eligible for an unreduced retirement benefit at 
age 65 with at least five years of service credit or 
age 50 with at least 30 years of service credit as 
elected by the employer. Vested VRS members in 
the VRS Plan 2 and the Hybrid Plan are eligible for 
unreduced retirement benefits at normal social 
security retirement age with at least five years of 
service credit or when age and service credit equal 
90. Vested SPORS and VaLORS members in both 
the VRS Plan 1 and the VRS Plan 2 are eligible for 
an unreduced benefit at age 60 with at least five 
years of hazardous duty service credit or age 50 
with at least 25 years of total service credit. 

Annual retirement benefits are payable monthly for 
life in an amount equal to 1.7 percent of eligible 
members’ average final compensation (AFC) for 
each year of service credit. Under the VRS Plan 2, 
the multiplier for general employees was reduced to 
1.65 percent beginning January 1, 2013. Under the 
Hybrid Plan, the multiplier for the defined benefit 
component is 1.0 percent. AFC is the average of 
the member’s 36 consecutive months of highest 
creditable compensation for members under the 
VRS Plan 1. Under the VRS Plan 2 and the Hybrid 
Plan, a member’s AFC is the average of the 
member’s 60 consecutive months of highest 
creditable compensation. The benefit for members 
of SPORS is calculated using a 1.85 percent 
multiplier. Members of SPORS also are eligible for 
a hazardous duty supplement, paid monthly, until 
they reach full Social Security retirement age. 

Members of VaLORS hired before July 1, 2001, 
were allowed to make a one-time election to 
increase the multiplier from 1.7 to 2.0 percent 
instead of receiving a monthly hazardous duty 
supplement. VaLORS members who elected to 
retain the 1.7 percent multiplier are eligible for the 
supplement until age 65. Members of VaLORS 
hired after June 20, 2001, have their benefit 
computed using the 2.0 percent multiplier and are 
not eligible for the supplement. 


Members of JRS receive weighted years of service 
credit for each year of actual service under JRS. 
VRS, SPORS, VaLORS, and JRS also provide 
death and disability benefits. 

A cost-of-living allowance (COLA), based on 
changes in the Consumer Price Index and limited to 
5.0 percent per year for VRS Plan 1 and 3.0 
percent for VRS Plan 2 and Hybrid Plan, is granted 
on July 1 of the second calendar year after 
retirement and is effective each July 1 thereafter. 
Beginning January 2013, a member who retires 
with less than 20 years of service must receive an 
allowance for one full calendar year after reaching 
unreduced retirement age to be eligible for a COLA. 
Members within five years of eligibility for an 
unreduced benefit as of January 1, 2013 were 
grandfathered. 

Benefits for all vested members are actuarially 
reduced if they retire before becoming eligible for 
an unreduced retirement benefit, provided they 
meet age requirements for a reduced retirement 
benefit. 

As required by Title 51.1 of the Code of Virginia, as 
amended, members contribute 5.0 percent of their 
annual compensation to the retirement plans. 
Employers may assume the 5.0 percent member 
contribution. If a member leaves covered 
employment, the accumulated contributions plus 
earned interest may be refunded to the member. 
Each participating employer is required by state 
statute to contribute the remaining amounts 
necessary to fund the retirement plans using the 
entry age normal actuarial cost method adopted by 
the Board of Trustees. Contributions for fiscal year 
2015 were $34.1 million, $34.7 million, and $79.2 
million, and reserved balances available for benefits 
were $733.4 million, $456.5 million, and $1.2 billion, 
for SPORS, JRS, and VaLORS, respectively. State 
statute may be amended only by the General 
Assembly. To the extent that the employer’s long¬ 
term obligation to provide pension benefits (total 
pension liability) is larger than the value of the 
assets available in the plan to pay these benefits 
(fiduciary net position), there is a net pension 
liability which is reported in the accompanying 
financial statements as a component of Long-term 
Liabilities Due in More than One Year. 

Further information about the benefits provided in 
these retirement plans and their different benefit 
structures can be found in the Virginia Retirement 
System’s Comprehensive Annual Financial Report. 


Commonwealth of Virginia 123 




The following table provides participant information. 



VRS 

SPORS 

VaLORS 

JRS 

Retirees and Beneficiaries Receiving Benefits 
Terminated Employees Entitled to Benefits 

52,521 

1,234 

3,781 

497 

but not Receiving Them 

10,447 

108 

584 

3 

Total 

62,968 

1,342 

4,365 

500 


Active Members: 


Vested 

55,637 

1,510 

5,746 

328 

Non-Vested 

22,567 

490 

3,033 

76 

Total 

78,204 

2,000 

8,779 

404 


D. Funding Policy 

The funding policy of the retirement plans provides 
for periodic employer contributions at actuarially 
determined rates, which will remain relatively level 
over time as a percentage of payroll and will 
accumulate sufficient assets to meet the cost of all 
basic benefits when due. Contribution rates are 
developed using the entry age normal cost method 
for both normal cost and amortization of the 
unfunded actuarial accrued liability. Gains and 
losses are reflected in the unfunded actuarial 
accrued liability that is being amortized as a level 
percentage of payroll within 30 years or less. 

The System’s actuary, Cavanaugh MacDonald 
Consulting, LLC, computed the amount of 
contributions to be provided by state agency 
employers, state police and other Virginia law 
employers. The contribution rates for fiscal year 
2015 were based on the actuary’s valuation as of 
June 30, 2013. Employer contributions by the 
Commonwealth to VRS, SPORS, VaLORS, and 
JRS were 12.3 percent, 25.8 percent, 17.7 percent, 
and 51.7 percent, respectively. These rates were 
lower than the actuary’s recommended rates to 
VRS, SPORS, VaLORS, and JRS of 15.8 percent, 
30.8 percent, 21.1 percent, and 57.8 percent, 
respectively. 

In addition to determining contribution 
requirements, the actuarial computations present 
an estimate of the discounted present value of the 
prospective accrued liability contributions that 


employers will have to pay in the future so that such 
contributions, together with the assets on hand, the 
normal contributions to be made in the future by 
employers and members and the income earned by 
investing funds, will be sufficient to provide all 
benefits to be paid to present members in the future 
as well as the annuitants and their designated 
beneficiaries. 

E. Changes in Net Pension Liability 

The Commonwealth implemented GASB Statement 
No. 68, Accounting and Financial Reporting for 
Pensions - an amendment of GASB Statement No. 
27, and GASB Statement No. 71, Pension 
Transition for Contributions Made Subsequent to 
the Measurement Date - an amendment of GASB 
Statement No. 68, during fiscal year 2015. The 
total pension liability was determined based on the 
actuarial valuation as of June 30, 2013, using 
updated actuarial assumptions, applied to all 
periods included in the measurement and rolled 
forward to the measurement date of June 30, 2014. 
The following disclosures have been added, as well 
as new Required Supplementary Information 
schedules. 

The following tables (dollars in thousands) show the 
Commonwealth’s total pension liability, plan 
fiduciary net position, and net pension liability for 
the VRS, SPORS, JRS, and VaLORS for the 
current and prior years. 


124 Commonwealth of Virginia 




Primary Government 



VRS 



SPORS 



Increase (Decrease) 



Increase (Decrease) 



Plan 



Plan 


Total Pension 

Fiduciary 

Net Pension 

Total Pension 

Fiduciary 

Net Pension 

Liability 

Net Position 

Liability 

Liability 

Net Position 

Liability 

(a) 

(b) 

(a) - (b) 

(a) 

(b) 

(a) - (b) 


Balances at June 30, 2014 

Changes for the year 

$ 11,856,894 

$ 8,161,556 

$ 3,695,338 

$ 996,690 

$ 

625,562 

$ 

371,128 

Service cost 

207,731 

- 

207,731 

18,341 


- 


18,341 

Interest 

Differences between expected 

808,180 

- 

808,180 

67,977 


- 


67,977 

and actual experience 

- 

- 

- 

- 


- 


- 

Contributions - employer 

- 

193,177 

(193,177) 

- 


42,683 


(42,683) 

Contributions - employee 

- 

111,448 

(111,448) 

- 


5,646 


(5,646) 

Net investment income 

- 

1,262,865 

(1,262,865) 

- 


98,682 


(98,682) 

Benefit payments, including refunds 

(622,936) 

(622,936) 

- 

(51,152) 


(51,152) 


- 

Administrative expense 

- 

(6,945) 

6,945 

- 


(431) 


431 

Other changes 

- 

69 

(69) 

- 


- 


- 

Net changes 

392,975 

937,678 

(544,703) 

35,166 


95,428 


(60,262) 

Balances at June 30, 2015 

$ 12,249,869 

$ 9,099,234 

$ 3,150,635 

$ 1,031,856 

$ 

720,990 

$ 

310,866 



JRS 



VaLORS 



Increase (Decrease) 



Increase (Decrease) 



Plan 



Plan 


Total Pension 

Fiduciary 

Net Pension 

Total Pension 

Fiduciary 

Net Pension 

Liability 

Net Position 

Liability 

Liability 

Net Position 

Liability 

(a) 

(b) 

(a) - (b) 

(a) 

(b) 

(a) - (b) 


Balances at June 30, 2014 $ 

Changes for the year 

590,626 

$ 

388,835 

$ 

201,791 

$ 1,616,994 

$ 920,785 

$ 

696,209 

Service cost 

24,024 


- 


24,024 

43,164 

- 


43,164 

Interest 

Differences between expected 

40,014 


- 


40,014 

110,491 

- 


110,491 

and actual experience 

- 


- 


- 

- 

- 


- 

Contributions - employer 

- 


27,727 


(27,727) 

- 

62,636 


(62,636) 

Contributions - employee 

- 


3,051 


(3,051) 

- 

16,622 


(16,622) 

Net investment income 

- 


60,833 


(60,833) 

- 

145,526 


(145,526) 

Benefit payments, including refunds 

(37,984) 


(37,984) 


- 

(77,111) 

(77,111) 


- 

Administrative expense 

- 


(268) 


268 

- 

(632) 


632 

Other changes 

- 


- 


- 

- 

- 


- 

Net changes 

26,054 


53,359 


(27,305) 

76,544 

147,041 


(70,497) 

Balances at June 30, 2015 $ 

616,680 

$ 

442,194 

$ 

174,486 

$ 1,693,538 

$ 1,067,826 

$ 

625,712 


Component Units 



VRS 



VaLORS 





Increase (Decrease) 



Increase (Decrease) 



Total Pension 
Liability 

(a) 

Plan 

Fiduciary 

Net Position 

(b) 

Net Pension 

Liability 
(a) - (b) 

Total Pension 
Liability 
(a) 

Plan 

Fiduciary 

Net Position 

(b) 

Net Pension 
Liability 
(a) - (b) 

Balances at June 30, 2014 

Changes for the year 

$ 

9,211,757 

$ 6,340,806 

$ 2,870,951 

$ 125,116 

$ 71,246 

$ 53,870 

Service cost 


161,389 

- 

161,389 

3,340 

- 

3,340 

Interest 

Differences betw een expected 


627,884 

- 

627,884 

8,549 

- 

8,549 

and actual experience 


- 

- 

- 

- 

- 

- 

Contributions - employer 


- 

150,082 

(150,082) 

- 

4,847 

(4,847) 

Contributions - employee 


- 

86,586 

(86,586) 

- 

1,286 

(1,286) 

Net investment income 


- 

981,134 

(981,134) 

- 

11,260 

(11,260) 

Benefit payments, including refunds 


(483,966) 

(483,966) 

- 

(5,966) 

(5,966) 

- 

Administrative expense 


- 

(5,396) 

5,396 

- 

(49) 

49 

Other changes 


- 

54 

(54) 

- 

- 

- 

Net changes 


305,307 

728,494 

(423,187) 

5,923 

11,378 

(5,455) 

Balances at June 30, 2015 

$ 

9,517,064 

$ 7,069,300 

$ 2,447,764 

$ 131,039 

$ 82,624 

$ 48,415 


Commonwealth of Virginia 125 




















The amounts in the previous tables include 
governmental and component unit activity for the 
Commonwealth’s VRS State Plan. The table also 
excludes the non-VRS State Plan net pension 
liability of $41.5 million for all other component units 
and includes the fiduciary net pension liability of 
$3.3 million. 

The 2014 actuarial valuations were prepared using 
the entry age normal cost method. The actuarial 
assumptions included (a) 7.0 percent investment 
rate of return, per year compounded annually; (b) 
projected salary increases ranging from 3.5 percent 
to 6.0 percent, including a 2.5 percent inflation 
component and (c) COLA of 2.5 percent for Plan 1 
and 2.3 percent for Plan 2. The projection of 
benefits for financial reporting purposes does not 
explicitly incorporate the potential effects of legal or 
contractual funding limitations. 

For more detailed actuarial information, refer to the 
Virginia Retirement System’s financial statements, 
including mortality rates shown in the “Actuarial 
Assumptions and Methods - Pension Plans” 
schedule. 


F. Changes to and Sensitivity of Discount Rate 

The discount rate used to measure the total 
pension liability was 7.0 percent. The projection of 
cash flows used to determine the discount rate 
assumed that contributions from participating 
employers will be based on the actuarially 
determined rates based on the Board’s funding 
policy, which certifies the required rates under Title 
51.1 of the Code of Virginia (1950), as amended. 
Based in those assumptions, the fiduciary net 
position was projected to be available to make all of 
the projected future benefit payments of current 
plan members. Therefore the long-term expected 
rate of return on pension plan investments was 
applied to all periods of the projected benefit 
payments to determine the total pension liability. In 
accordance with GASB Statement No. 67, Financial 
Reporting for Pension Plans - an amendment of 
GASB Statement No. 25, regarding the disclosure 
of the sensitivity of the net pension liability to 
changes in the discount rate, the table below 
presents the employers’ net pension liability for 
each of the plans calculated using the discount rate 
of 7.0 percent, as well as what the employers’ net 
pension liability would be if it were calculated using 
a discount rate that is 1.0 percent lower (6.0 
percent) or 1.0 percent higher (8.0 percent) than 
the current rate. The following table (dollars in 
thousands) shows the Commonwealth’s changes in 
the discount rate. 


Primary Government 


VRS 


Net Pension Liability 

1% Decrease 

(6%) 

Current 

Discount Rate 

(7%) 

1% Increase 

(8%) 

$ 4,615,433 

$ 3,150,635 

$ 1,922,363 

JRS 

Net Pension Liability 

1% Decrease 
(6%) 

Current 

Discount Rate 
(7%) 

1% Increase 
(8%) 

$ 230,771 

$ 174,486 

$ 125,641 

Component Units 



VRS 


Net Pension Liability 

1% Decrease 
(6%) 

Current 

Discount Rate 

(7%) 

1% Increase 
(8%) 

$ 3,585,662 

$ 2,447,764 

$ 1,493,604 


SPORS 


Net Pension Liability 

1% Decrease 

(6%) 

Current 

Discount Rate 

(7%) 

1% Increase 

(8%) 

$ 434,119 

$ 310,866 

$ 207,412 

VaLORS 

Net Pension Liability 

1% Decrease 
(6%) 

Current 

Discount Rate 

(7%) 

1% Increase 
(8%) 

$ 854,988 

$ 625,712 

$ 437,200 


VaLORS 


Net Pension Liability 


Current 


1% Decrease 

Discount Rate 

1% Increase 

(6%) 

(7%) 

(8%) 

$ 66,151 

$ 48,415 

$ 33,833 


126 Commonwealth of Virginia 










The long-term expected rate of return on the 
System’s investments was determined using a 
building-block method in which best-estimate 
ranges of expected future real rates of return 
(expected returns, net of investment expense and 
inflation) are developed for each major asset class. 
These ranges are combined to produce the long¬ 
term expected rate of return by weighting the 
expected future real rates of return by the target 
asset allocation percentage and by adding 
expected inflation. The target allocations are based 
on the Strategic Asset Allocation Implementation 
Schedule and Allowable Ranges document, which 
was approved by the VRS Board of Trustees on 
June 20, 2013. Best estimates of arithmetic real 
rates of return for each major asset class included 
in the System’s target asset allocation are 
summarized in the following table. 

Arithmetic Weighted Average 

Long-Term Long-Term 
Target Expected Expected 


Asset Class (Strategy) 

Allocation 

Rate of Return 

Rate of Return 

U.S. Equity 

19.5% 

6.5% 

1.3% 

Developed Non U.S Equity 

16.5% 

6.3% 

1.0% 

Emerging Market Equity 

6.0% 

10.0% 

0.6% 

Fixed Income 

15.0% 

0.1% 

0.0% 

Emerging Debt 

3.0% 

3.5% 

0.1% 

Rate Sensitive Credit 

4.5% 

3.5% 

0.2% 

Non Rate Sensitive Credit 

4.5% 

5.0% 

0.2% 

Convertibles 

3.0% 

4.8% 

0.1% 

Public Real Estate 

2.2% 

6.1% 

0.1% 

Private Real Estate 

12.8% 

7.1% 

0.9% 

Private Equity 

12.0% 

10.4% 

1.3% 

Cash 

1.0% 

-1.5% 

0.0% 

Total 

100.0% 


5.8% 


Inflation 


2.5% 

* Expected arithmetic nominal return 


8.3% 


The allocation in the previous table provides a one- 
year expected return of 8.3 percent. However, one- 
year returns do not take into account the volatility 
present in each of the asset classes. In setting the 
long-term expected return for the pension system, 
stochastic projections are employed to model future 
returns under various economic conditions. The 
results provide a range of returns over various time 
periods that ultimately provide a median return of 
7.4 percent, including expected inflation of 2.5 
percent. 

G. Pension Related Deferred Outflows and 
Deferred Inflows 

GASB Statement No. 68, Accounting and Financial 
Reporting for Pensions - an amendment of GASB 
Statement No. 27, and GASB Statement No. 71, 
Pension Transition for Contributions Made 
Subsequent to the Measurement Date - an 
amendment of GASB Statement No. 68, require 
certain pension related items to be reported as 
either deferred outflows or deferred inflows of 
resources. The following table (dollars in 
thousands) summarizes these amounts as of June 
30, 2015. 


Commonwealth of Virginia 127 




Primary Government 


Differences betw een expected and actual 
experience 

Changes of assumptions 
Net difference betw een projected and 
actual earnings on plan investments 
Changes in proportion and difference 
betw een employer contributions and 
proportionate share of contributions 
Employer contributions subsequent to the 
Measurement Date 

Total 


Differences betw een expected and actual 
experience 

Changes of assumptions 
Net difference betw een projected and 
actual earnings on plan investments 
Changes in proportion and difference 
betw een employer contributions and 
proportionate share of contributions 
Employer contributions subsequent to the 
Measurement Date 

Total 


Component Units 


Differences betw een expected and actual 
experience 

Changes of assumptions 
Net difference betw een projected and 
actual earnings on plan investments 
Changes in proportion and difference 
betw een employer contributions and 
proportionate share of contributions 
Employer contributions subsequent to the 
Measurement Date 

Total 


VRS 


Deferred 

Outflows of 

Resources 

Deferred 

Inflows of 

Resources 

$ 

$ 

- 

578,735 

42,240 

44,879 

270,918 

_ 

$ 313,158 

$ 623,614 

JRS 

Deferred 

Outflows of 

Resources 

Deferred 

Inflows of 

Resources 

$ 

$ 

- 

27,102 

31,561 


$ 31,561 

$ 27,102 


VRS 

Deferred 

Deferred 

Outflows of 

Inflows of 

Resources 

Resources 

$ 

$ 


420,511 



35,270 


32,632 


207,317 


_ 

$ 

242,587 

$ 

453,143 


SPORS 


Deferred 

Outflows of 

Resources 

Deferred 

Inflows of 

Resources 

$ 

$ 

- 

44,006 

28,417 


$ 28,417 

$ 44,006 

VALORS 

Deferred 

Deferred 

Outflows of 

Inflows of 

Resources 

Resources 

$ 

$ 

- 

63,975 

10,796 

10,623 

55,359 

_ 

$ 66,155 

$ 74,598 


VaLORS 

Deferred 

Outflows of 

Resources 


Deferred 

Inflows of 

Resources 

$ 

$ 

- 

- 


5,855 

799 


972 

4,465 


_ 

$ 5,264 

$ 

6,827 


Additionally, during fiscal year 2015, the Commonwealth recognized pension expense for primary government and 
component units of $315,517 (dollars in thousands) and $174,347 (dollars in thousands), respectively. The component 
unit amounts include deferred outflows of resources and deferred inflows of resources of $4,604 (dollars in thousands) 
and $13,169 (dollars in thousands), respectively, not related to the VRS State Plan. 


128 Commonwealth of Virginia 




Deferred Amounts to be Recognized in Fiscal 
Years Following Reporting Date 

The following tables (dollars in thousands) provide 
the net estimated amount of the deferred inflows 
and deferred outflows of resources that will be 
recognized in the Commonwealth’s pension 
expense for each of the next five fiscal years. 


Primary Government 



VRS 

SPORS 

JRS 

VaLORS 

2016 

$ (144,684) 

$ (11,001) 

$ (6,775) 

$ (15,994) 

2017 

(144,684) 

(11,001) 

(6,775) 

(15,994) 

2018 

(144,684) 

(11,001) 

(6,775) 

(15,994) 

2019 

(144,683) 

(11,003) 

(6,777) 

(15,993) 

2020 

- 

- 

- 

- 


Component Units 



VRS 

VaLORS 

2016 

$ (105,128) 

$ (1,464) 

2017 

(105,128) 

(1,464) 

2018 

(105,128) 

(1,464) 

2019 

(105,127) 

(1,463) 

2020 

- 

- 


H. Defined Contribution Plan for Political 
Appointees 

Officers appointed by the Governor, officers elected 
by popular vote or the General Assembly, and 
executive branch chief deputies and confidential 
assistants may participate in the deferred 
contribution plan for Political Appointees, rather 
than the VRS. This optional retirement plan is 
authorized by the Code of Virginia and offered 
through the ICMARC. This is a defined contribution 
plan where the retirement benefits are based upon 
the Commonwealth’s 12.3 percent and the 
employee’s (5.0 percent) contributions, plus interest 
and dividends. The Commonwealth pays the 
required employee contributions. During the year 
ended June 30, 2015, the total contributions to this 
plan were $1.3 million. 

The summary of significant accounting policies for 
the plan is in accordance with those discussed in 
Note 15. B. 

I. Defined Contribution Plan for Public School 
Superintendents 


J. Virginia Supplemental Retirement Plan 

The Public School Teacher Supplemental 
Retirement Plan is a defined contribution pension 
plan established by the Department of Education to 
provide an optional postemployment benefit plan for 
turnaround specialists in the public school system. 
This plan is utilized as an incentive to attract highly 
skilled teachers for participating public schools 
pursuant to the Code of Virginia by Title 51.1-617. 
The Board of Trustees of the System manages the 
investments of the fund as custodian. School 
boards may elect to offer this plan as an option to 
the standard VRS plan that is available for school 
board members. Contributions are provided by the 
school boards for credit to the members. At June 
30, 2015, there were two participants in this plan. 
There were no contributions to the plan for fiscal 
year 2015. 

K. Higher Education Fund (Nonmajor Component 
Unit) 

The Commonwealth’s colleges and universities 
participate in the retirement plans administered by 
VRS. In addition, full-time faculty and certain 
administrative staff of the Commonwealth’s 
colleges and universities may participate in optional 
retirement plans as authorized by Section 51.1-126 
of the Code of Virginia rather than the VRS 
retirement plans. These optional retirement plans 
are defined contribution plans offered through 
Teachers Insurance and Annuity Association - 
College Retirement Equities Fund (TIAA-CREF), 
and Fidelity Investments Tax-Exempt Services 
Company. There are two defined contribution 
plans. Plan 1 is for employees hired prior to July 1, 
2010, and retirement benefits received are based 
upon the employer’s 10.4 percent contributions, 
plus net investment gains. Plan 2 is for employees 
hired on or after July 1, 2010, and retirement 
benefits received are based upon the employer’s 
8.5 percent not to exceed 8.9 percent contribution 
and the employee’s 5.0 percent contribution, plus 
net investment gains. For Plan 2, the employer 
contributions for fiscal year 2015 were 8.5 percent 
except the employer contributions for the University 
of Virginia (nonmajor) were 8.9 percent. Vesting is 
full and immediate for both employer and employee 
contributions. For fiscal year 2015, total pension 
expense recognized was $137.4 million. For fiscal 
year 2015, contributions were calculated using the 
base salary amount of $1.4 billion. 


The Public School Superintendent Plan is a defined 
contribution pension plan that provides optional 
postemployment benefits for school 
superintendents. This plan is authorized by the 
Code of Virginia. The Board of Trustees of the 
System manages the investments of the fund as 
custodian. School boards may elect to offer this 
plan as an option to the standard VRS plan that is 
available for school board members. Contributions 
are provided by the school board for credit to the 
member. At June 30, 2015, there were four 
participants in this plan. Total contributions to the 
plan for fiscal year 2015 were $79,811. 


University of Virginia Medical Center (part of the 
University of Virginia - nonmajor) employees hired 
after July 1, 1999, cannot participate in Plan 1 or 
Plan 2 noted above but have the option of 
participating in the Medical Center's Optional 
Retirement Plan. For information regarding this 
plan, see the institution’s individually published 
financial statements. 

Prior to July 1, 1997, certain employees of the 
Virginia Commonwealth University Health System 
Authority (Authority) (a blended component unit of 
Virginia Commonwealth University - nonmajor) 
were eligible to participate in the VRS pension plan. 


Commonwealth of Virginia 129 




Effective July 1, 1997, the Authority established the 
Virginia Commonwealth University Health System 
Authority Defined Contribution Plan. The Authority 
has also established the Virginia Commonwealth 
University Health System Authority Health Care 
Providers Defined Contribution Plan. The Authority 
and the MCV Associated Physicians (MCVAP - a 
component unit of the Authority) sponsor the 
VCUHS Savings Plan (VCUHS 457(b) plan). 
MCVAP also sponsors the VCUHS 401(a) 
Retirement Plan and the MCVAP 401(a) Retirement 
Plan. VA Premier (a component unit of the 
Authority) adopted a 401 (k) plan. For information 
regarding these plans, see the Authority’s 
individually published financial statements. 

Effective January 1, 1997, James Madison 

University (nonmajor) established a Supplemental 
Retirement Plan for tenured faculty members. The 
plan is a qualified plan within the meaning of 
section 401(c) of the Internal Revenue Code of 
1986 (the Code) and is a governmental plan within 
the meaning of section 414(d) of the Code. For 
information regarding this plan, see the University’s 
individually published financial statements. 

The Center for Innovative Technology (CIT) is a 
blended component unit of the Innovation and 
Entrepreneurship Investment Authority (nonmajor). 
The CIT has a defined contribution retirement plan 
covering substantially all employees. Under the 
plan, CIT makes contributions fixed at a percentage 
of each employee’s compensation to pay premiums 
for individual retirement annuity contracts written by 
TIAA-CREF. For information regarding this plan, 
see the Authority’s individually published financial 
statements. 

L. Other Component Units 

Note I.B. outlines the component units included in 
the Commonwealth’s reporting entity. The Virginia 
Public Building Authority (blended - primary 
government), the Virginia Public School Authority 
(major), the Virginia College Building Authority 
(major), the Virginia University Research 
Partnership (nonmajor), and the Virginia School for 
the Deaf and Blind Foundation (nonmajor) have no 
employees. Virginia Resources Authority (major) 
and the following nonmajor component units 
participate in the retirement plans administered by 
VRS: the Virginia Economic Development 

Partnership, the Virginia Small Business Financing 
Authority, the Hampton Roads Sanitation District 
Commission, the Virginia Biotechnology Research 
Partnership Authority, the Virginia Tourism 
Authority, the Tobacco Indemnification and 
Community Revitalization Commission, the Virginia 
Foundation for Healthy Youth, and the Fort Monroe 
Authority. 

The Virginia Housing Development Authority 
(major) has two defined contribution plans and 
incurs employment retirement savings expense 
under these plans equal to between 8.0 and 11.0 
percent of full-time employees’ compensation. For 
additional information regarding these plans, see 


the Authority’s individually published financial 
statements. 

The Virginia Outdoors Foundation (nonmajor) 
maintains a 401 (k) contribution plan and provides 
an employer contribution to all eligible employees of 
2.0 percent of their salary. Employees can 
contribute to the plan up to the IRS limit and the 
Foundation will match up to an additional 2.0 
percent for a maximum of 4.0 percent of an 
employees’ contribution. For information regarding 
this plan, see the Foundation’s individually 
published financial statements. 

The Virginia Commercial Space Flight Authority 
(nonmajor) maintains a 401(a) contribution plan and 
provides an employer contribution to all eligible 
employees of 11.0 percent of their base salary. For 
information regarding this plan, see the Authority’s 
individually published financial statements. 

The Virginia Port Authority (VPA) (nonmajor) 
maintains two defined benefit plans for its 
employees. Employees of record on July 1, 1997, 
had the option of continuing to maintain their benefit 
status as a State employee, and their benefits 
maintained under the VRS, or elect to be covered 
under a newly created pension plan (the VPA 
Defined Benefit Plan). The VPA Defined Benefit 
Plan covers all employees hired between July 1, 
1997 and February 1, 2014. Employees hired after 
February 1, 2014 are eligible for a defined 
contribution plan only. The Virginia International 
Terminals (VIT) (a blended component unit of VPA 
- nonmajor) has a Virginia International Terminals, 
LLC Pension Plan that is a single employer, 
noncontributory defined benefit pension plan 
administered by VIT. VIT also sponsors 
noncontributory supplemental plans covering 
certain key employees. For information regarding 
this plan, see the Authority’s individually published 
financial statements. 

Employees of the Virginia Museum of Fine Arts 
Foundation (nonmajor) who are age 21 or older are 
eligible to participate in the Employee’s Savings 
Plan, a 401 (k) defined contribution profit sharing 
plan. Also, the Foundation entered into a 
supplemental retirement agreement to pay a key 
employee of the Museum upon retirement the 
difference between the amount accrued under the 
VRS retirement plan, based on salary, and the 
amount based on the supplemental salary. For 
additional information regarding these plans, see 
the Foundation’s individually published financial 
statements. 

The Science Museum of Virginia Foundation 
(nonmajor) has a 403(b) defined contribution 
pension plan through the Teachers Insurance and 
Annuity Association (TIAA) and the College 
Retirement Equities Fund (CREF) Retirement Plan 
for employees meeting age and service 
requirements. For additional information regarding 
this plan, see the Foundation’s individually 
published financial statements. 


130 Commonwealth of Virginia 




16. OTHER EMPLOYMENT BENEFITS 

In addition to the pension plans, the Commonwealth 
participates in two other employment benefit plans, 
Group Life Insurance and the Virginia Sickness and 
Disability Program, which are administered by the 
Virginia Retirement System (the System). The System 
administers a third other employment benefit plan, the 
Volunteer Firefighters’ and Rescue Squad Workers’ 
Fund, in which the Commonwealth does not participate, 
but may provide funding. The significant accounting 
policies for all three plans are the same as those 
described in Note 15 for pension plans. A separately 
issued financial report that includes financial statements 
for the Group Life Insurance and Virginia Sickness and 
Disability Program is publicly available. Copies may be 
obtained by writing to the Virginia Retirement System, 
P. O. Box 2500, Richmond, Virginia 23218-2500. 

Group Life Insurance 

The Group Life Insurance Plan was established for 
Commonwealth employees, teachers, employees of 
political subdivisions participating in the VRS, state 
police officers, other state law enforcement and 
correctional officers, judges, and other qualifying 
employees. The program provides life insurance for 
natural death coverage equal to a member’s annual 
compensation rounded to the next highest $1,000 and 
then doubled. Accidental death coverage is double the 
natural death benefit. The program also provides 
coverage for accidental dismemberment and accidental 
blindness, a safety belt benefit, a repatriation benefit, a 
felonious assault benefit and an accelerated death 
benefit for terminal conditions. Approximately 358,323 
members participate in the program at June 30, 2015. 

Participating employers and their covered employees 
are required by Title 51.1 of the Code of Virginia, as 
amended, to contribute to the cost of group life 
insurance benefits. Employers may assume the 
employees’ contributions. 

An optional Group Life Insurance Fund was established 
for members covered under the group life program as a 
supplement to that plan. Members may purchase 
optional life insurance coverage for themselves, their 
spouses and/or their dependent children. The optional 
program provides natural death coverage equal to one, 
two, three or four times the member’s annual 
compensation rounded to the next highest $1,000, up to 
a maximum of $750,000. Spouse coverage is available 
for up to one-half of the member’s optional insurance 
amount. Minor children who are at least 15 days old 
can be insured for $10,000, $20,000 or $30,000, 
depending on the option chosen by the member. An 
additional accidental death and dismemberment benefit 
is payable for death or bodily injuries. Approximately 
66,882 members were covered under this program at 
June 30, 2015. 

Optional group life insurance coverage ends for 
members when they retire or terminate their 
employment, or when their basic coverage ends. 
Optional life insurance amounts begin to reduce by 25.0 
percent based on the retiree’s age, beginning with the 
retiree’s normal retirement age under his or her plan 
ending at age 80. Retirees may elect to continue 


coverage within 31 days of retirement. Spouse 
coverage terminates should a couple divorce or when 
the member leaves employment. Children’s coverage 
ends with the termination of the member’s coverage or 
when the child marries or turns 21 years of age (25 
years of age for full-time college students). 

Employers of members who elect optional life insurance 
coverage deduct the premiums from the members’ 
paychecks, as required by Title 51.1 of the Code of 
Virginia, as amended. Premiums are based on the 
member’s age and determined by the Board of 
Trustees. Because optional life insurance is an insured 
product, the carrier bills each employer directly, and the 
employer makes the contribution payments to the 
carrier. Any differences and adjustments are settled 
between the employer and the carrier. 

Virginia Sickness and Disability Program 

The System administers the Virginia Sickness and 
Disability Program (VSDP) to provide income protection 
in the event of a disability for eligible state employees 
hired on or after January 1, 1999. State agencies are 
required by Title 51.1 of the Code of Virginia to 
contribute to the cost of providing long-term disability 
benefits and administering the program. 

VSDP benefits include sick, family and personal leave 
and short-term and long-term disability benefits. After a 
seven-calendar day waiting period following the first day 
of disability, eligible employees receive short-term 
disability benefits from 60.0 percent to 100.0 percent of 
their compensation. After 125 work days of short-term 
disability, eligible employees receive long-term disability 
benefits equal to 60.0 percent of their compensation. If 
the employee’s condition becomes catastrophic, income 
replacement increases to 80.0 percent until the 
condition is no longer catastrophic. Long-term disability 
benefits continue until employees return to work, retire 
or reach age 65 (age 60 for state police officers and 
other state law enforcement and correctional officers) or 
die. 

Full-time permanent salaried state employees, including 
state police officers and other Virginia law and 
correctional officers, are automatically enrolled in the 
VSDP. Part-time permanent salaried state employees 
who work at least 20 hours a week and accrue leave 
also are automatically enrolled. Teaching, 
administrative and research faculty of Virginia public 
colleges and universities who elect VRS as their 
retirement plan must make an irrevocable election to 
participate in either the VSDP or the institution’s 
disability program. If there is no institution program, the 
faculty member is covered under VSDP. 

Eligible state employees and state police officers 
employed before January 1, 1999, had the option to 
elect to participate in the VSDP or remain under the 
Commonwealth’s existing sick leave program and retain 
their eligibility for disability retirement benefits under 
VRS and SPORS. (Members of VaLORS have been 
automatically enrolled in the VSDP since October 1, 
1999, when VaLORS was created.) Eligible employees 
enrolled in the VSDP are not eligible for disability 
retirement benefits under VRS, SPORS, or VaLORS. 
Employees hired or rehired on or after July 1, 2009, 


Commonwealth of Virginia 131 




must satisfy eligibility periods before becoming eligible 
for non-work related short-term disability coverage and 
certain income replacement levels. Approximately 
73,986 members were covered under the program at 
June 30, 2015. 

Volunteer Firefighters' and Rescue Squad Workers' 
Fund 

Volunteer firefighters and rescue squad workers may 
participate in an optional employment benefit plan. This 
optional plan is authorized by the Code of Virginia. The 
Board of Trustees of the System manages the 
investments of the fund as custodian. Members of the 
plan contribute $30 per quarter. The Commonwealth 
will contribute an amount determined by the Board and 
appropriated by the General Assembly, if such funds are 
appropriated, for a period not to exceed 20 years. For 
fiscal year 2015, there were no monies appropriated for 
administration of the program. At June 30, 2015, there 
were 1,789 workers participating in the fund. 


17. OTHER POSTEMPLOYMENT BENEFITS (OPEB) 

A. Virginia Retirement System (The System) 
Administered Plans 

The Governmental Accounting Standards Board 
(GASB) issued Statement No. 43, Financial 
Reporting for Postemployment Benefit Plans Other 
Than Pension Plans, which requires additional 
reporting and disclosures for OPEB plans. The 
statement became effective for System- 
administered OPEB plans beginning with the fiscal 
year ended June 30, 2007. The assets and 
actuarial accrued liabilities for the following other 
postemployment benefits were determined through 
an actuarial valuation performed as of June 30, 
2014, by Millman, Inc. for the long-term care 
component of the Disability Insurance Trust Fund 
and by Cavanaugh MacDonald Consulting, LLC, 
and are presented in the Required Supplemental 
Schedule of Funding Progress for Other 
Postemployment Benefit Plans. The significant 
accounting policies for all five plans are the same 
as those described in Note 15 for pension plans 
and a separately issued report is available as 
previously discussed. 

Group Life Insurance Benefits 

Employees who retire or terminate from service 
after age 50 with at least ten years of service credit 
or at age 55 with at least five years of service credit 
(age 50 for vested state police officers, other state 
law enforcement and correctional officers and 
hazardous duty employees of participating political 
subdivisions), or who retire because of disability, 
are entitled to postemployment group life insurance 
benefits. Employees enrolled in JRS who retire or 
terminate from service after age 60 with at least 30 
years of service credit or at age 65 with at least five 
years of service credit are entitled to 
postemployment group life insurance benefits. At 
retirement or termination, accidental death benefits 
cease and natural death coverage reduces at a rate 
equal to 25.0 percent on January 1 of the first full 


calendar year following retirement or termination 
and on January 1 of each year thereafter, until it 
reaches 25.0 percent of its original value. These 
group life insurance benefit provisions and 
requirements are established by Title 51.1 of the 
Code of Virginia. There were approximately 
163,482 retirees in the Basic Group Life Insurance 
Program and 2,764 retirees were covered under the 
Optional Group Life Insurance Program in fiscal 
year 2015. 

Since 1960, when the group life insurance program 
was established, a portion of the premium 
contributions collected during members’ active 
careers has been placed in an advance premium 
deposit reserve. This reserve was established to 
pre-fund death benefits to members after 
retirement. 

Employers providing life insurance benefits are part 
of a cost-sharing pool. Therefore, separate 
measurements of assets and actuarial accrued 
liabilities are not made for individual employers 
participating in the program. 

Retiree Health Insurance Credit Program 

The Retiree Health Insurance Credit Program was 
established on January 1, 1990, to provide benefits 
for retired state employees, state police officers, 
other state law enforcement and correctional 
officers and judges who have at least 15 years of 
service credit under the retirement plans. The 
program provides a credit reimbursement of $4 per 
month per year of service credit against the monthly 
health insurance premiums of eligible retirees. 

A similar program was established on July 1, 1993, 
to provide a health insurance credit for retired 
teachers and employees of participating political 
subdivisions with at least 15 years of service credit 
under the retirement plans. Retired teachers are 
eligible for a monthly credit of $4 per month per 
year of service credit. Local government retirees 
may receive a maximum credit of $1.50 per month 
per year of service with a maximum monthly credit 
of $45. 

Benefit provisions and eligibility requirements are 
established by Title 51.1, Chapter 14 of the Code of 
Virginia. The amount required to fund all credits is 
financed by the employers based on contribution 
rates determined by the System’s actuary. 
Approximately 112,053 retired members were 
covered under this program at June 30, 2015. The 
Retiree Health Insurance Credit Program is an 
agent, multiple-employer defined benefit OPEB 
plan. 

Disability Insurance Trust Fund 

The Commonwealth provides OPEB disability 
insurance benefits, in accordance with state 
statutes, to eligible retired and terminated 
employees. State agencies are required by Title 
51.1 of the Code of Virginia to contribute to the cost 
of providing long-term disability benefits and 
administering the program. There were 
approximately 2,860 former members receiving 


132 Commonwealth of Virginia 




benefits from the program during fiscal year 2015. 
The Disability Insurance Trust Fund is a single¬ 
employer defined benefit OPEB plan. 

Line of Duty Death and Disability 

The Commonwealth provides death and health 
benefits to the beneficiaries of certain law 
enforcement and rescue personnel disabled or 
killed in the line of duty. A trust fund has been 
established to account for this activity. Benefit 
provisions and eligibility requirements are 
established by Title 9.1 Chapter 4 of the Code of 
Virginia. The significant accounting policies for this 
plan are the same as those described in Note 15 for 
pension plans. There were approximately 937 
retirees and 945 other participants in the program in 
fiscal year 2015. The Line of Duty Death and 
Disability Program is a cost-sharing, multiple- 
employer defined benefit OPEB plan. The 
employer contribution rate was determined by the 
System’s actuary using the anticipated costs and 
the number of covered individuals associated with 
all of the covered employers. Additionally, the 
Department of Accounts provides certain 
administrative support in claims administration. 

Virginia Local Disability Program 

The Virginia Local Disability Program (VLDP) was a 
new program for the System in fiscal year 2014. 
The program provides eligible local government 
employees who are members of the Hybrid 
retirement plan with sick, family and personal leave 
and short-term and long-term disability benefits for 
non-work-related and work-related illnesses and 
injuries. The System is responsible for 
administering the disability program and the 
payment of long-term disability benefits. Local 
employers are responsible for administering the 
leave program and the payment of short-term 
disability benefits. 

During fiscal year 2015, the System collected 
contributions for eligible employees and 
implemented the structure for administering the 
program going forward. At June 30, 2015, there 
were 5,666 participants in the program. 

B. Pre-Medicare Retiree Healthcare 

The Commonwealth provides a healthcare plan 
established by Title 2.2, Chapter 28 of the Code of 


Virginia for retirees who are not yet eligible to 
participate in Medicare. For a retiree to participate 
in the Plan, the participant must be eligible for a 
monthly annuity from the VRS or a periodic benefit 
from one of the qualified Optional Retirement Plan 
(ORP) vendors, and: 

• be receiving (not deferring) the annuity or 
periodic benefit immediately upon retirement; 

• have his or her last employer before retirement 
be the state; 

• be eligible for coverage as an active employee 
in the State Health Benefits Program until his 
or her retirement date (not including Extended 
Coverage); and, 

• have submitted within 31 days of his or her 
retirement date an Enrollment Form to his or 
her Benefits Administrator to enroll. 

This fund is reported as part of the 
Commonwealth’s Healthcare Internal Service Fund. 
The significant accounting policies for this plan are 
the same as those described in Note 15 for pension 
plans. Pre-Medicare Retiree Healthcare is a single¬ 
employer defined benefit OPEB plan and is 
administered by the Department of Human 
Resource Management. There were approximately 
6,835 retirees in the program in fiscal year 2015. 

C. Annual OPEB Cost and Net OPEB Obligation 

The Governmental Accounting Standards Board 
(GASB) issued GASB Statement No. 45, 
Accounting and Financial Reporting by Employers 
for Postemployment Benefits Other Than Pensions, 
which required additional reporting and disclosures 
for OPEB plans beginning with the fiscal year 
ending June 30, 2008. The Commonwealth 
calculated an OPEB liability as of June 30, 2015 for 
each of the five OPEB plans covering 
Commonwealth employees. The Retiree Health 
Insurance Credit Fund, Disability Insurance Trust 
Fund, and Pre-Medicare Retiree Healthcare OPEB 
liabilities were $182.3 million, $191.1 million, and 
$1.1 billion, respectively. These amounts are 
reported in the accompanying financial statements 
as a component of Long-Term Liabilities Due in 
More than One year. There is no liability for the 
Group Life Insurance Fund or Line of Duty Death 
and Disability. 


Commonwealth of Virginia 133 




The following table (dollars in thousands) shows the Commonwealth’s annual OPEB cost and net OPEB obligation (asset) 
for the current and prior years. 


Group Life Insurance Fund 


Retiree Health Insurance Credit Fund 




2015 


2014 


2013 


2015 


2014 


2013 

Annual required contribution 

$ 

63,778 

$ 

63,250 

$ 

60,457 

$ 

81,253 

$ 

72,322 

$ 

67,804 

Interest on net OPEB obligation 


- 


- 


- 


11,437 


10,515 


9,626 

Adjustment to annual required 













contribution 


- 


- 


- 


(9,911) 


(9,092) 


(8,336) 

Annual OPEB cost 


63,778 


63,250 


60,457 


82,779 


73,745 


69,094 

Contributions made 


(63,778) 


(63,250) 


(60,457) 


(64,025) 


(60,219) 


(56,636) 

Increase in net OPEB obligation 


- 


- 


- 


18,754 


13,526 


12,458 

Net OPEB obligation, beginning of year 


- 


- 


- 


163,552 


150,026 


137,568 

Net OPEB obligation, end of year 

$ 

- 

$ 

- 

$ 

- 

$ 

182,306 

$ 

163,552 

$ 

150,026 

Percentage of annual OPEB 













cost contributed 


100.0% 


100.0% 


100.0% 


77.3% 


81.7% 


82.0% 


Disability Insurance Trust Fund 

Line of Duty Death and Disability 

2015 2014 2013 

2015(3) 2014(2) 2013(1) 


Annual required contribution 

Interest on net OPEB obligation 

Adjustment to annual required 

contribution 

$ 36,831 

12,315 

(10,681) 

$ 

30,302 $ 

11,262 

(9,763) 

29,862 

10,247 

(8,900) 

$ 6,122 $ 

6,486 $ 

5,925 

Annual OPEB cost 

38,465 


31,801 

31,209 

6,122 

6,486 

5,925 

Contributions made 

(23,642) 


(16,644) 

(16,986) 

(6,122) 

(6,486) 

(5,925) 

Increase in net OPEB obligation 

14,823 


15,157 

14,223 

- 

- 

- 

Net OPEB obligation, beginning of year 

176,273 


161,116 

146,893 

- 

- 

- 

Net OPEB obligation, end of year 

$ 191,096 

$ 

176,273 $ 

161,116 

$ - $ 

- $ 

- 

Percentage of annual OPEB 

cost contributed 

61.5% 


52.3% 

54.4% 

100.0% 

100.0% 

100.0% 


Pre-Medicare Retiree Healthcare 



2015 


2014 

2013 

Annual required contribution 

$ 206,590 

$ 

198,451 $ 

182,566 

Interest on net OPEB obligation 

36,398 


30,013 

23,274 

Adjustment to annual required 





contribution 

(37,762) 


(31,007) 

(24,117) 

Annual OPEB cost 

205,226 


197,457 

181,723 

Contributions made 

(35,028) 


(34,229) 

(15,479) 

Increase in net OPEB obligation 

170,198 


163,228 

166,244 

Net OPEB obligation, beginning of year 

911,695 


748,467 

582,223 

Net OPEB obligation, end of year 

$ 1,081,893 

H 

911,695 $ 

748,467 

Percentage of annual OPEB 





cost contributed 

17.1% 


17.3% 

8.5% 


(1) During fiscal year 2013, the required annual contributions of $5.9 million were paid by the Commonwealth. Additionally, the loan 
increased to $14.9 million that will be repaid in future periods with contributions received. 

(2) During fiscal year 2014, the required annual contributions of $6.5 million were paid by the Commonwealth. Additionally, the loan 
decreased to $8.3 million that will be repaid in future periods with contributions received. 

(3) During fiscal year 2015, the required annual contributions of $6.1 million were paid by the Commonwealth. 


134 Commonwealth of Virginia 













The amounts in the previous table include 
Governmental and Component Unit activity for 
which the Commonwealth is considered the 
employer. It does not include the OPEB liability for 
the following nonmajor component units: the 
Virginia Economic Development Partnership, the 
Virginia Tourism Authority, the Fort Monroe 
Authority, and the Virginia Outdoors Foundation of 
$2.0 million, $1.1 million, $349,553, and $56,475, 
respectively. The table also excludes non- 
Commonwealth sponsored OPEB liabilities of $48.5 
million for all other component units and includes 
the fiduciary OPEB liability of $589,370. 

The annual required contributions for the current 
year were determined during the actuarial 
valuations conducted as of June 30, 2013, as that 
is the most recent report that reflects the current 
funding policies. Employer contributions by the 
Commonwealth for Group Life Insurance, Retiree 
Health Insurance Credit and Disability Insurance 
were 1.2 percent, 1.0 percent, and 0.7 percent, 
respectively, of covered payrolls for fiscal year 
2015. The valuations were prepared using the 
entry age normal cost method for all plans except 
for the Disability Insurance trust fund and the Line 
of Duty Act trust fund for which the Projected Unit 
Credit actuarial cost method was used. The Pre- 
Medicare Retiree Healthcare plan uses a 4.0 
percent investment rate of return, per year 
compounded annually, which approximates the 
projected rate of return on the State Treasurer's 
Portfolio. The Group Life Insurance, Retiree Health 


Insurance Credit and Disability Insurance use a 7.0 
percent investment rate of return, per year 
compounded annually. The Line of Duty Act trust 
fund uses a 4.8 percent rate of return compounded 
annually. The actuarial assumptions for all but the 
Pre-Medicare Retiree Healthcare plan included a 
projected salary increase of 3.0 percent, including a 
2.5 percent inflation component. Valuation 
techniques were applied to smooth the effects of 
short-term volatility in the market value of 
investments over a five year period. The actuarial 
assumptions for the Pre-Medicare Retiree 
Healthcare plan as to current claim cost, projected 
increases in health insurance costs, mortality, 
turnover, retirement, disability and discount rate 
include (a) projected salary increases ranging from 
3.8 percent to 5.6 percent, including a 2.5 percent 
inflation component; and, (b) assumption that there 
is no liability associated with those retirees eligible 
for Medicare, as costs for members aged 65 and 
older are not subsidized by the active population 
(no implicit subsidy), participants pay 100.0 percent 
of the costs, and the liability associated with the 
health insurance credit is measured and held by the 
Virginia Retirement System. Initial healthcare costs 
trend rates used were 10.0 percent, 11.0 percent, 
and 6.0 percent for medical, pharmacy, and dental 
benefits, respectively. The ultimate trend rates 
used were 5.0 percent, 5.0 percent, and 4.0 percent 
for medical, pharmacy, and dental benefits, 
respectively. The remaining open amortization 
period at June 30, 2013, was 30 years. 


D. Funded Status and Funding Progress 

The funded status of the plan as of June 30, 2014, per the most recent actuarial valuation, was as follows: 
(Dollars in Millions) _ 


Actuarial 
Valuation 
Date 
June 30 


Actuarial 
Value of 
Assets [a] 


Actuarial 
Accrued 
Liability 
(AAL) [b] 


Unfunded 
AAL (UAAL) 
[b-a] 


Funded 

Ratio 

[a/b] 


Covered 
Payroll [c] 


Group Life Insurance Fund 


UAAL as a 
Percentage 
of Covered 
Payroll 
[b-a]/[c] 


2014 

$ 

992 

$ 

2,701 $ 1,709 36.7% 

$ 

17,559 

9.7% 

2014 

$ 

162 

$ 

Retiree Health Insurance Credit Fund 

2,334 $ 2,172 7.0% 

$ 

14,956 

14.5% 

2014 

$ 

380 

$ 

Disability Insurance Trust Fund 

239 $ (141) 159.0% 

$ 

3,585 

(3.9%) 

2014 

$ 

7 

$ 

Line of Duty Death and Disability 

226 $ 219 3.1% 


N/A 

N/A 

2014 

$ 


$ 

Pre-Medicare Retiree Healthcare 

1,342 $ 1,342 

$ 

4,011 

33.5% 


Commonwealth of Virginia 135 






Actuarial valuations of ongoing plans involve 
estimates of the value of reported amounts and 
assumptions about the probability of occurrence of 
events far into the future and reflect a long-term 
perspective. Amounts determined regarding the 
funded status of the plans and the annual 
contributions of the employer are subject to 
continual revision as actual results are compared 
with past expectations and new estimates are made 
about the future. Calculations are based on the 
benefits provided under the terms of the 
substantive plan in effect at the time of each 
valuation and on the pattern of sharing costs 
between the employer and plan members to that 
point. The schedule of funding progress presented 
as required supplementary information following the 
notes to the financial statements presents multi¬ 
year trend information that shows whether the 
actuarial value of plan assets is increasing or 
decreasing over time relative to the actuarial 
accrued liabilities for benefits. The projection of 
benefits for financial reporting purposes does not 
explicitly incorporate the potential effects of legal or 
contractual funding limitations. 

E. Higher Education Fund (Nonmajor Component 
Unit) 

The University of Virginia has a Retiree Health Plan 
that covers employees who retire before becoming 
eligible for Medicare until they reach age 65 and 
can then participate in the Commonwealth’s 
Medicare Supplement Plan. Additional information 
on this plan can be found in the individually 
published financial statements of the University. 

F. Other Component Units 

The Virginia Housing Development Authority 
(major) has a Retiree Health Care Plan, a single¬ 
employer defined benefit plan which is administered 
through the Virginia Housing Development 
Authority Retiree Health Care Plan Trust, an 
irrevocable trust to be used solely for providing 
benefits to eligible participants. Effective January 
1, 2006, eligible retirees must be at least 55 years 
of age with 15 years of service or at least 55 years 
of age with 10 years of service if employed by the 
Authority prior to such date. For the year ended 
June 30, 2015, the Authority’s Annual OPEB cost 
was $231,871; the percentage of Annual OPEB 
Cost Contributed was 511.0 percent; and the 
ending Net OPEB asset was $3.1 million. 

Hampton Roads Sanitation District Commission 
(nonmajor) provides other postemployment benefits 
for its employees through a single employer defined 
benefit plan. The plan was established and may be 
amended by the Commission. The plan furnishes 
health and dental benefits for life for all employees 
with at least 15 years of service and who also 
qualify for an unreduced retirement benefit through 
the VRS. The plan allows the retiree at their 
expense to cover their spouse and dependents 
under the district's health care provider. 
Contribution requirements are actuarially 
determined and funding is subject to approval by 
the Commission. The current rate is 6.0 percent of 


annual covered payroll. For 2015, the 
Commission’s annual OPEB cost was $2.2 million; 
the percentage of annual OPEB cost contributed 
was 100.0 percent. 

The Virginia Port Authority (VPA) (nonmajor) offers 
post retirement medical and dental benefits to 
employees who retire under either VRS or the VPA 
pension plan. For employees and their spouses, 
who are participants in the VPA medical plan, not 
participants under the state health care plan VRS, 
benefit provisions and obligations are established 
and may be amended by the board of 
commissioners of the Authority. For the year ended 
June 30, 2015, the Authority’s annual OPEB cost 
was $48,800; contribution towards OPEB cost was 
$270,227; the percentage of annual OPEB cost 
contributed was 553.7 percent; and the ending net 
OPEB asset was $26,718. 


18. DEFERRED COMPENSATION PLANS 

The Commonwealth offers its employees a deferred 
compensation plan created in accordance with Internal 
Revenue Code Section 457(b). The Virginia Retirement 
System (the System) administers the deferred 
compensation plan, pursuant to the Government 
Employees Deferred Compensation Plan Act, Section 
51.1, Chapter 6 et seq. of the Code of Virginia. The 
System contracts with private corporations or institutions 
subject to the standards set forth in the Code to provide 
investment products as well as any other goods and 
services related to the administration of the deferred 
compensation plan. The Department of Accounts is 
responsible for the accounting, reconciliation, payment 
to the plan through payroll deductions, and timely 
transfer of withheld funds to the trustee designated by 
the System for investment. The plan provides a number 
of investment options and is designed so that each 
participant retains investment control of his/her 
individual account. The plan, available to all state 
employees, permits them to defer a portion of their 
salary until future years. The deferred compensation is 
held in trust for the exclusive benefit of plan participants 
and their beneficiaries and is not available to employees 
until termination, retirement, death, unforeseeable 
emergency, or an in-service distribution at age 70 !4 or 
later. Since the System has no fiduciary relationship 
with plan participants, plan assets at June 30, 2015, of 
$2.1 billion are not included in the financial statements. 

In addition, the Commonwealth provides a cash match 
under Internal Revenue Code Section 401(a) for 
employees participating in the deferred compensation 
plan. The match amount for an employee was 
established at 50.0 percent of the voluntary 
contributions to the deferred compensation plan. During 
the current fiscal year, the maximum match was $20 per 
pay period or $40 per month. The fair value of assets in 
the cash match savings plan at June 30, 2015, was 
$369.8 million, which is also excluded from the financial 
statements. 


136 Commonwealth of Virginia 




Most employees of the Commonwealth’s colleges and 
universities may participate in the Commonwealth’s 
deferred compensation plan in accordance with Internal 
Revenue Code Section 457(b) and/or the institution’s 
deferred compensation plan in accordance with Internal 
Revenue Code Section 403(b). Under either plan, the 
institution’s cash match under the Internal Revenue 
Code Section 401(a) during fiscal year 2015 was a 
maximum match up to $20 per pay period or $40 per 
month. This employer match is for either plan but not 
both plans. Employer contributions under these plans 
were approximately $13.7 million for fiscal year 2015. 

The deferred compensation plan for the University of 
Virginia Medical Center (part of the University of Virginia 
- nonmajor component unit) employees hired on or after 
September 30, 2002, allows employee contributions up 
to 4.0 percent of their salary and the employer match is 
50.0 percent of the 4.0 percent deferral not to exceed 
2.0 percent of the employees’ salary. Employer 
contributions under this plan were approximately $2.5 
million for fiscal year 2015. 

The Virginia Housing Development Authority (major 
component unit) and the Virginia Resources Authority 
(major component unit) have deferred compensation 
plans available to all employees created in accordance 
with Internal Revenue Section 457(b). The plan permits 
participants to defer a portion of their salary or wage 
until future years. The deferred compensation is not 
available to employees until termination, retirement, or 
death. The assets of the plan are in an irrevocable trust 
with an external trustee and, accordingly, no assets or 
liabilities are reflected in the financial statements. 

The Assistive Technology Loan Fund Authority 
(nonmajor component unit) employees contribute an 
amount of their choosing into Deferred Compensation 
Plans administered by the Virginia Retirement System 
and into a qualified 403(b) plan. 

The Virginia Port Authority (VPA) (nonmajor component 
unit) offers three deferred compensation plans and two 
matching savings plans under Internal Revenue Code 
Sections 457 and 401(a), respectively. Employees who 
maintain status under VRS are covered under the 
deferred compensation plan administered by the 
System. The VPA deferred compensation plan covers 
all employees hired between July 1, 1997 and February 
1, 2014, and those employees electing coverage under 
the authority’s deferred compensation plan. Employees 
hired after February 1, 2014, are eligible for a defined 
contribution plan. In January 2014, the VPA Board of 
Commissioners voted to amend the VPA Defined 
Benefit Plan to freeze participation and to provide that 
no new participants shall be admitted or readmitted after 
January 28, 2014. The VPA also offers a matching 
savings plan that covers substantially all employees. 
The matching savings plan requires the VPA to match 
contributions in an amount equal to half of the first 6.0 
percent of the participant’s base pay contributed to the 
plan. The VPA’s total contribution to the matching 
savings plan was $115,081 for the fiscal year ended 
June 30, 2015. Employees transferring to the VPA from 
Virginia International Terminals, LLC (VIT) (a blended 
component unit of the VPA), as part of the Port of 
Virginia (POV) restructure or shared services 
agreement, that had been hired by the VIT prior to 


July 1, 2012, and were active participants of the VIT’s 
pension plan at the time of the transfer, and are not 
eligible for the Enhanced Defined Contribution plan, are 
eligible for a matching contribution in an amount equal 
to half of the first 3.0 percent of compensation 
contributed to the deferred compensation plan. The 
VPA’s total contribution to the matching savings plan for 
the VIT plan participants was $15,915 for the fiscal year 
ended June 30, 2015. Further, the rights to modify, 
alter, amend, or terminate the deferred compensation 
plan and matching savings plan rests with the VPA 
Board of Commissioners. 

The third deferred compensation plan and second 
matching savings plan covers substantially all non-union 
employees with 90 days or more of service. The 
matching savings plan requires the VPA to match 
employee contributions in an amount equal to half of the 
first 3.0 percent of the participant’s base pay contributed 
to the deferred compensation plan. The VPA’s total 
contribution to the matching savings plan was $366,389 
for the fiscal year ended June 30, 2015. 

19. STATE NON-ARBITRAGE POOL 

The Commonwealth sponsors the Virginia State Non- 
Arbitrage Program (SNAP) for use by the 
Commonwealth and local governments to invest bond 
proceeds. The Commonwealth’s responsibility is limited 
to hiring service providers to manage SNAP. The 
investment manager and the custodian have the 
fiduciary responsibility for SNAP. 

The SNAP fund is a class of the PFM Funds Prime 
Series, a money market mutual fund registered with the 
Securities and Exchange Commission. PFM Funds is a 
diversified, open-end management investment company 
organized as a Virginia business trust. Shares of the 
SNAP fund are solely available to investors participating 
in the SNAP program. The PFM Funds Board of 
Trustees has overall responsibility for supervising the 
SNAP fund’s business and affairs, including the 
oversight of organizations providing investment 
advisory, administration, and distribution services to the 
SNAP fund. PFM Asset Management LLC serves as 
the investment adviser of the SNAP fund. The SNAP 
individual investment portfolios are the responsibility of 
the SNAP investment manager and the governments 
investing proceeds in the portfolios. These investments 
are held solely in the SNAP participants’ names. Since 
the Commonwealth has no fiduciary relationship with 
local governmental entities participating in the plan, 
these assets of $2.2 billion are not included in the 
financial statements. 


Commonwealth of Virginia 137 




20. COMMITMENTS 

A. Construction Projects 
Primary Government 
Highway Projects 

At June 30, 2015, the Department of Transportation 
had contractual commitments of approximately $3.6 
billion for construction of various highway projects. 
Funding for these expenditures is expected to be 
provided as follows: (1) federal funds - 
approximately 25.0 percent or $905.0 million, (2) 
state funds - approximately 68.0 percent or $2.4 
billion, and (3) Proceeds from Bonds - 
approximately 7.0 percent or $254.0 million. 

Mass Transit Projects 

At June 30, 2015, the Department of Rail and 
Public Transportation had contractual commitments 
of approximately $315.2 million for various public 
transportation, rail preservation, and rail 
enhancement projects. Funding of the future 
expenditures is expected to be as follows: 1) State 
funds - approximately 65.3 percent or $206.0 
million, and 2) Federal funds - approximately 34.7 
percent or $109.2 million. 

Wastewater Treatment Projects 

At June 30, 2015, the Department of Environmental 
Quality was committed to grant contracts with 
localities to reimburse a portion of construction 
costs for nutrient reduction facilities at wastewater 
treatment plants totaling $102.6 million provided by 
bond proceeds and the Water Quality Improvement 
Fund. 

Other Construction Projects 

At June 30, 2015, the Department of Behavioral 
Health and Developmental Services had 

construction commitments of approximately $45.4 
million. 

At June 30, 2015, the Department of General 
Services had construction commitments of 

approximately $33.8 million for renovations to the 
Ninth Street Office Building. 

At June 30, 2015, the Department of Conservation 
and Recreation had construction commitments of 
approximately $15.4 million. 

At June 30, 2015, the Department of Forensic 
Science had contractual commitments of 

approximately $12.7 million and non-contractual 
commitments of $920,998 for construction 
contracts. 


At June 30, 2015, the Jamestown-Yorktown 
Foundation had construction commitments of 
approximately $7.3 million for the Yorktown 
Museum Project. 

At June 30, 2015, the Department of Military Affairs 
had construction commitments of approximately 
$4.7 million. 

Component Units 

Port Projects 

At June 30, 2015, the Virginia Port Authority 
(nonmajor) was committed to construction contracts 
totaling $93.6 million. 

Wallops Island Project 

At June 30, 2015, the Virginia Commercial Space 
Flight Authority (nonmajor) was committed to 
construction programs totaling $11.0 million. 

Treatment Plant 

At June 30, 2015, the Hampton Roads Sanitation 
District Commission (nonmajor) was committed to 
construction contracts totaling $166.8 million. 

Higher Education Institutions 

Colleges and universities (nonmajor) had 
contractual commitments as of June 30, 2015, of 
approximately $762.8 million primarily for 
construction contracts. Higher education 
foundations’ commitments total approximately 
$36.0 million and are primarily for construction 
contracts. 

B. Operating Leases 

The Commonwealth has entered into numerous 
agreements to lease land, buildings, and 
equipment. Most of the operating leases contain the 
provision that the Commonwealth may renew the 
operating leases at the expiration date of the lease 
on a month-to-month basis. In most cases, 
management expects that in the normal course of 
business, leases will be renewed or replaced by 
other leases of a similar nature. Rental expense for 
the primary government under these operating 
leases for the year ended June 30, 2015, was 
$68.8 million for governmental activities (including 
internal service funds) and $25.5 million for 
business-type activities. Rental expense for the 
discrete component units (excluding foundations) 
for the year ended June 30, 2015, was $153.5 
million. The Commonwealth has, as of June 30, 
2015, the following minimum rental payments due 
under the above leases (dollars in thousands): 


At June 30, 2015, the Department of Veterans 
Services had construction commitments of 
approximately $7.7 million for an addition to the 
Sitter and Barfoot Veterans Care Center. 


138 Commonwealth of Virginia 




_ Prim ary Gove mm e nt _ 

Governmental Business-type Component 




Activities 


Activities 


Units (1) 

2016 

$ 

61,721 

$ 

23,012 

$ 

123,204 

2017 


47,541 


17,782 


112,221 

2018 


39,573 


13,539 


106,638 

2019 


32,144 


9,485 


97,073 

2020 


24,088 


5,746 


91,020 

2021-2025 


64,263 


9,771 


459,206 

2026-2030 


5,181 


- 


522,166 

2031-2035 


1,003 


- 


3,388 

2036-2040 


23 


- 


823 

2041-2045 


23 


- 


823 

2046-2050 


23 


- 


659 

Total 


275,583 

$_ 

79,335 

$_ 

1,517,221 


Note (1): The above amounts exclude operating lease 
obligations of foundations. 


Foundations (2) 


2016 

$ 

3,749 

2017 


2,173 

2018 


1,554 

2019 


1,322 

2020 


1,192 

Thereafter 


3,578 

Total 

$ 

13,568 


Note (2): Foundations represent FASB reporting entities 

defined in Note 1 .B. Rental expense for the year 
ended June 30, 2015, was approximately $4.5 
million. 


Lease agreements are for various terms and 
contain nonappropriation clauses indicating that 
continuation of the lease is subject to funding by the 
General Assembly. 

C. Investment Commitments - Virginia Retirement 
System 

The Virginia Retirement System extends 
investment commitments in the normal course of 
business, which, at June 30, 2015, amounted to 
$9.0 billion. 

D. Virginia Transportation Infrastructure Bank 

Section 33.2-1500 of the Code of Virginia states the 
Virginia Transportation Infrastructure Bank is 
intended to help alleviate a critical financing need 
for present and future highways within the 
Commonwealth. This includes toll facilities; mass 
transit; freight, passenger, and commuter rail; and 
port, airport and other transportation facilities. As of 
June 30, 2015, the Department of Transportation 
had $88.4 million in outstanding loans to the City of 
Chesapeake for the Dominion Boulevard Project 
and Loudoun County for the Pacific Boulevard 
Project coordinated through the Virginia Resources 
Authority. 


E. Tobacco Grants 

The Tobacco Indemnification and Community 
Revitalization Commission (nonmajor component 
unit) had $136.3 million in grant award 
commitments not reflected in the accompanying 
financial statements since eligibility requirements 
were not met as of June 30, 2015, in accordance 
with GASB Statement No. 33. 

The Virginia Foundation for Healthy Youth 
(nonmajor component unit) had $8.4 million in grant 
commitments and outstanding contracts not 
reflected in these statements since eligibility 
requirements were not met as of June 30, 2015, in 
accordance with GASB Statement No. 33. 

F. Other Commitments 
Primary Government 

At June 30, 2015, the Department of Corrections 
had contractual commitments of approximately 
$120.4 million and non-contractual commitments of 
approximately $150.0 million for detention services, 
medical care, and food services. 

At June 30, 2015, the Department of Motor 
Vehicles had contractual commitments of 
approximately $31.8 million for security technology 
services. 

At June 30, 2015, the Virginia Department of Health 
had commitments of approximately $26.4 million to 
localities, trauma centers, trainers, grants to rescue 
squads, and water supply assistance grants. 

At June 30, 2015, the Virginia Employment 
Commission had contractual commitments of 
approximately $9.4 million and non-contractual 
commitments of approximately $7.7 million for an 
information systems modernization project. The 
agency also had $109,146 in other contractual 
commitments. 

The Virginia College Savings Plan (major enterprise 
fund) administers the Virginia529 prePAID 
Program. At June 30, 2015, the Program had 
$240.0 million in private equity commitments. 

The Virginia Wireless E-911 (nonmajor enterprise 
fund) had $4.7 million in outstanding grants 
awarded but not yet disbursed to localities as of 
June 30, 2015, since all of the eligibility criteria 
have not been met in accordance with GASB 
Statement No. 33. 

Component Units 

The Virginia Housing Development Authority 
(major) had $402.3 million in commitments to fund 
new loans as of June 30, 2015, since all of the 
eligibility criteria have not been met in accordance 
with GASB Statement No. 33. 


Commonwealth of Virginia 139 




The Virginia Resources Authority (major) was 
obligated to disburse $120.7 million in loan 
commitments to various localities and other 
governmental entities in the Commonwealth of 
Virginia as of June 30, 2015, since all of the 
eligibility criteria have not been met in accordance 
with GASB Statement No. 33. 

The Virginia Small Business Financing Authority 
(nonmajor) had $3.5 million in loan commitments to 
banks and borrowers as of June 30, 2015, since all 
of the eligibility criteria have not been met in 
accordance with GASB Statement No. 33. 


21. ACCRUED LIABILITY FOR COMPENSATED 
ABSENCES 

Employees accrue annual leave at a rate of four to nine 
hours semimonthly, depending on their length of 
service. The maximum leave accumulation is dependent 
upon years of service, but in no case may it exceed 432 
hours at the end of the leave year. The maximum 
compensation for annual leave balances is also 
dependent upon years of service, but in no case may an 
employee be compensated for more than 336 hours 
upon separation. 

All employees hired after January 1, 1999, are required 
to enroll in the Virginia Sickness and Disability Program 
(VSDP) (see Note 16). Under the VSDP, employees 
receive a specified number of sick and personal leave 
hours, depending on their length of service, and any 
balances at the end of the leave year revert. Individuals 
employed at January 1, 1999, had the option of 
converting to the VSDP or remaining in the traditional 
sick leave plan. If converting, the employee’s sick leave 
balance could be used to purchase retirement credits or 
be converted to disability credits. If an employee opted 
to remain in the traditional sick leave program, sick 
leave accrues at a rate of five hours semimonthly. 
Employees who leave state service after a minimum of 
five years employment receive the lesser of 25.0 
percent of the value of their disability credits or 
accumulated sick leave at their current earnings rate or 
$5,000. All employees leaving state service are paid for 
accrued annual leave up to the maximum leave year 
limit at their current earnings rate. 

In conformance with Section C60 of the GASB 
Codification, the monetary value of accumulated 
vacation, compensatory, overtime, recognition, and sick 
leave payable upon termination is included in the 
accompanying financial statements and is reported as 
Compensated Absences. In the government-wide 
statements, proprietary fund statements, and discrete 
component unit fund statements, compensated absence 
amounts are segregated into two components - the 
amount due within one year and the amount due in 
more than one year. Compensated absences due 
within one year consist of an estimate of the amount 
that will be used by active employees for paid time off 
and/or paid upon termination, plus the actual amount 
paid after June 30 for employees terminating on or 
before June 30. In the governmental fund statements, 
amounts to be paid from expendable resources are 
recognized as fund liabilities in the applicable 
governmental fund types as long-term liabilities and 


represent payments to employees for separations that 
occurred on or before June 30. Amounts not payable 
from expendable resources are reflected in the 
governmental activities column in the Government-wide 
Statement of Net Position (see Note 26). All amounts 
related to the fiduciary funds are recognized in those 
funds. 

The liability at June 30, 2015, was computed using 
salary rates effective at that date, and represents 
vacation, compensatory, overtime, recognition, and sick 
leave earned, or disability credits held by employees, up 
to the allowable ceilings. 

22. POLLUTION REMEDIATION OBLIGATIONS 

The Commonwealth has pollution remediation 
obligations of $12.0 million, of which $2.0 million is due 
within one year. With the exception of the Department 
of Environmental Quality (DEQ), agencies estimated 
future obligations based on professional consultant 
estimates and/or historical project expenses of similar 
projects; however, there is the potential for change in 
estimates due to price increases or reductions, 
technology, or applicable laws and regulations. 
Remediations for DEQ are not estimates but contractual 
obligations between the Commonwealth and the U.S. 
Environmental Protection Agency (EPA), and any 
change due to a reconciliation of incurred costs requires 
mutual consent and contract amendment. 

The estimated Commonwealth pollution remediation 
liability relates to the anticipated cost of hazardous 
waste removal, cleanup relating to leakage of 
underground storage tanks, soil and groundwater 
contaminations, dump site cleanups, asbestos, lead 
contamination and remediation relating to superfund 
state contracts. 

Agencies involved in remediation include: 

• Department of Corrections (DOC) 

• Department of Emergency Management (VDEM) 

• Department of Environmental Quality (DEQ) 

• Department of Juvenile Justice (DJJ) 

• Department of Transportation (VDOT) 

A Facility Lead Agreement was signed between the 
EPA and VDOT to resolve an issue concerning the 
storage of lab wastewater in an outdoor lined surface 
impoundment that operated between 1979 and 1983 for 
which contamination is present in soil and groundwater. 
DOC was fined by the EPA in September/October 2003. 
DOC proposed to conduct a Supplemental 
Environmental Project (SEP) which included the 
formation of the Pollution Prevention Section of the 
Environmental Services Unit, disclosure of all 
environmental deficiencies to both the EPA and DEQ 
and corrections of those deficiencies. 


140 Commonwealth of Virginia 





The following pollution remediation outlays could not 
reasonably be estimated as of June 30, 2015: 

• VDEM relating to cleanup of an emergency fuel 
storage facility 

• DEQ relating to groundwater treatment and landfill 
clean-up 

• VDOT relating to groundwater contamination 

• DJJ relating to petroleum storage tank removal 


23. INSURANCE 

A. Self-Insurance 

The Commonwealth maintains two types of self- 
insurance plans. The first type of self-insurance is a 
health care plan administered by the Department of 
Human Resource Management for Commonwealth 
employees. The plan is accounted for in the Health 
Care Internal Service Fund. Interfund premiums 
are accounted for as internal activity receipts from 
other funds. At June 30, 2015, $118.0 million is 
reported as the estimated claims payable for this 
fund, which is undiscounted as nearly all health 
care claims are current in nature. The estimated 
liability is based upon actual claims that have been 
submitted as well as actuarially determined claims 
incurred but not reported as described in Note I.U. 
Changes in the balances of claims liabilities (dollars 
in thousands) during the current and prior fiscal 
years are as follows: 

Current 
Year Claims 

Balance and Changes Claim Balance 

Julyl, in Estimates Payments June 30, (1) 

2014-2015 $ 124,890 $ 1,215,569 $ (1,222,454) $ 118,005 

2013-2014 $ 116,432 $ 1,112,747 $ (1,104,289) $ 124,890 


(1) The entire ending balance shown above is due within 
one year. 

The second type of plan, Risk Management, is 
administered by the Department of the Treasury, 
Division of Risk Management and the Department 
of Human Resource Management, Worker’s 
Compensation Program. These plans are 
accounted for in the Risk Management Internal 
Service Fund. The Department of the Treasury 
administers risk management programs providing 
property, general (tort) liability, medical malpractice, 
automobile and surety bond exposures for the 
Commonwealth of Virginia as provided in Sections 
2.2-1834 through 1838 and Section 2.2-1840 of the 
Code of Virginia. Established subject to the 
approval of the Governor, risk management plans 
provide state agencies with protection through 
purchased insurance, self-insurance or a 
combination thereof. Interfund premiums for the 
fund are accounted for as internal activity receipts 
from other funds. The claims payable is an 
estimated liability based upon actual claims that 
have been submitted as well as actuarially 
determined claims incurred but not reported. At 


June 30, 2015, $651.4 million is reported as the 
estimated claims payable for the risk management 
plan. This amount is discounted to present value at 
a rate of 3.0 percent. Undiscounted claims payable 
at June 30, 2015, is $960.4 million. The estimated 
losses are based upon actual claims that have 
been submitted, as well as claims incurred but not 
reported. Changes in the balances of claims 

liabilities (dollars in thousands) during the current 

and prior fiscal years are as follows: 

Current 
Year Claims 

Balance and Changes Claim Balance 

Julyl, in Estimates Payments June 30, (1) 

2014-2015 $ 624,543 $ 98,941 $ (72,063) $ 651,421 

2013-2014 $ 622,835 $ 71,103 $ (69,345) $ 624,593 


(1) Of the balance shown above, $83.2 million is due 
within one year. 

For workers’ compensation, the Commonwealth 
assumes the full risk of claims filed. For tort and 
automobile, liability is assumed at a maximum of 
$2.0 million per occurrence. Medical malpractice is 
assumed at the maximum per occurrence recovery 
limited stated in Section 8.01-581.15 of the Code of 
Virginia. Risk Management purchases commercial 
insurance to protect state-owned property with 
deductibles as stated in the insurance policies. 

The Commonwealth has not had any insurance 
settlements exceed the coverage during the past 
three years. 

At June 30, 2015, the Virginia Commonwealth 
University Health System Authority (Authority) (a 
blended component unit of the Virginia 
Commonwealth University - nonmajor component 
unit) reports the following claims payable amounts: 
estimated workers’ compensation claims of $21.5 
million and estimated losses on malpractice claims 
of $2.8 million. MCV Associated Physicians 
(component unit of the Authority) reports claims 
payable of $23.1 million for estimated losses on 
malpractice claims. Virginia Premier Health Plan 
(component unit of the Authority) reports claims 
payable of $95.0 million for estimated medical 
claims payable. Additional information on claims 
payable can be found in the Authority’s individually 
published financial statements. 

Virginia International Terminals, LLC (VIT) (a 
blended component unit of the Virginia Port 
Authority - nonmajor) is partially self-insured for 
certain workers’ compensation claims. The 
Authority maintains insurance coverage of $5.0 
million per claim, but is obligated to pay the first 
$1.0 million of any individual’s claims per incident. 
The Authority is also partially self-insured for 
employee health coverage. The Authority is 
responsible for actual claim costs up to $125,000 
per individual per calendar year. Insurance 
coverage is maintained for claims in excess of the 
individual employee limit and for aggregate claims 
in excess of $8.4 million. 


Commonwealth of Virginia 141 




B. Public Entity Risk Pools 

The Commonwealth administers two types of public 
entity risk pools for the benefit of local 
governmental units: health care and risk 
management insurance. The Local Choice Health 
Care plan was established to make comprehensive 
health care insurance available to localities and 
political subdivisions at affordable rates and with 
stable premiums. During the fiscal year, there were 
322 local government units participating in the pool. 
This includes 34 school districts, 42 counties, 117 
cities/towns, and 129 other subdivisions. This 
program is accounted for in the Local Choice 
Health Care Enterprise Fund (nonmajor). 

The Department of Human Resource Management, 
under Section 2.2-1204 of the Code of Virginia, has 
the authority to design, set rates, and administer 
the Local Choice Health Care fund. The pool’s 
standard contract period is one year. However, a 
member group may withdraw on the last day of any 
month with three month’s written notice. 
Contributions are based on the current necessary 
contribution and the amortization of experience 
adjustments in the pool. At June 30, 2015, $31.8 
million is reported as the actuarially determined 
estimated claims payable for this fund based on 
claims incurred but not reported. 

The actuarial liability is determined for the 
membership pool in total and then adjusted for 
each locality based on individual historic and 
demographic data. If the pool’s assets were to be 
exhausted, the program participants would share 
the responsibility for any liabilities or deficits. 

The Department of the Treasury, Division of Risk 
Management administers risk management 
programs for political subdivisions, constitutional 
officers and others in accordance with Section 
2.2-1839 of the Code of Virginia. These pools were 
established to provide an economical, low-cost 


alternative to the commercial insurance market for 
the Commonwealth’s political subdivisions. These 
risk programs are accounted for in the Risk 
Management Enterprise Fund (nonmajor). The pool 
is established subject to approval by the Governor. 
It may be insurance, self-insurance, or any 
combination thereof, and must provide protection 
and legal defense against liability. Participation is 
voluntary and open to those identified in Section 
2.2-1839, Code of Virginia. As of June 30, 2015, 
there were 489 units of local government in the 
pool, including 3 cities, 23 towns, and 29 counties. 
The remaining 434 units include a large variety of 
boards, commissions, authorities, and special 
districts. 

The pool has a minimum membership period of one 
year. However, a member group can cancel 
membership and withdraw from the plan on their 
coverage anniversary date or at the end of the 
fiscal year with 30 days notice. 

The pool is actuarially valued annually and is 
considered sound. No excess insurance or 
reinsurance is provided, but a “stability fund” is 
incorporated into the actuarially determined 
required reserves. For the liability insurance pool, 
participation is voluntary and open to those 
identified in Section 2.2-1839 of the Code of 
Virginia. The risk assumed by the local public entity 
pool for member liability is $1.0 million per 
occurrence. 

At June 30, 2015, $29.3 million is reported as 
estimated claims payable for these programs. This 
figure is actuarially determined for the fund in total 
and is reported at gross and does not reflect 
possible reimbursements for insurance recoveries. 

The following schedule (dollars in thousands) 
shows the changes in claims liabilities for the past 
two fiscal years. 


142 Commonwealth of Virginia 




Local Choice Health Care _ _ Risk Management 


June 30, 

June 30, 

June 30, 

June 30, 

2015 

2014 

2015 

2014 


Unpaid Claims and Claim 

Adjustment Expenses at Beginning of Fiscal Year 

$ 

33,028 

$ 

31,225 

$ 30,143 $ 

27,404 

Incurred Claims and Claim Adjustment Expenses: 

Provision for Insured Events of the Current Fiscal Year 

Changes in Provision for Insured Events of Prior Fiscal Years 


327,910 


293,514 

(204) 

(414) 

204 

2,261 

Total Incurred Claims and Adjustment Expenses 


327,910 


293,514 

(618) 

2,465 

Payments: 

Claims and Claim Adjustment Expenses Attributable to 

Insured Events of the Current Fiscal Year 


329,099 


291,711 

922 

367 

Total Payments 


329,099 


291,711 

922 

367 

Change in Provision for Discounts 





669 

641 

Total Unpaid Claims and Claim Adjustment Expenses at 

End of the Fiscal Year (Discounted) (1) (2) (3) 

$ 

31,839 

$ 

33,028 

$ 29,272 $ 

30,143 

Total Unpaid Claims and Claim Adjustment Expenses at 

End of the Fiscal Year (Undiscounted) 

$ 

31,839 

$ 

33,028 

$ 31,551 $ 

32,337 


Note (1): The entire balance for Local Choice Health Care, $31,839 (dollars in thousands) is due within one year. 
Note (2): Of the balance shown above for Risk Management, $7,429 (dollars in thousands) is due within one year. 
Note (3): The interest rate used for discounting is 3.0 percent. 


24. ACCOUNTS PAYABLE 


The following table (dollars in thousands) summarizes Accounts Payable as of June 30, 2015. 




Vendor 


Salary/ 

Wage 


Retainage 


Other 

Foundations (1) 


Total 

Primary Government: 













General 

$ 

186,710 

$ 

93,534 

$ 

20 

$ 

- 

$ 

- 

$ 

280,264 

Major Special Revenue Funds: 













Commonw ealth Transportation 


295,987 


29,714 


3,292 


- 


- 


328,993 

Federal Trust 


103,209 


16,483 


3,994 


- 


- 


123,686 

Literary 


21 


- 


- 


- 


- 


21 

Nonmajor Governmental Funds 


34,005 


18,120 


5,565 


291 


- 


57,981 

Major Enterprise Funds: 













Virginia Lottery (2) 


6,472 


1,312 


- 


4,181 


- 


11,965 

Virginia College Savings Ran (2) 


328 


460 


- 


154 


- 


942 

Unemployment Compensation 


78 


- 


- 


- 


- 


78 

Nonmajor Enterprise Funds 


38,281 


5,645 


- 


- 


- 


43,926 

Internal Service Funds 


78,263 


2,789 


1,635 


- 


- 


82,687 

Private Purpose Trust Funds 


217 


160 


- 


2,487 


- 


2,864 

Pension and Other Employee Benefit Trust Funds (3) 


224 


2,040 


- 


41,949 


- 


44,213 

Agency Funds 


1,968 


- 


- 


4,134 


- 


6,102 

Total Primary Government (4) 

$ 

745,763 

$ 

170,257 

$ 

14,506 

$ 

53,196 

$ 

- 

$ 

983,722 

Discrete Component Units: 













Virginia Housing Development Authority 

$ 

2,669 

$ 

2,062 

$ 

- 

$ 

36,472 

$ 

- 

$ 

41,203 

Virginia Public School Authority 


67 


- 


- 


- 


- 


67 

Virginia Resources Authority 


215 


7 


- 


- 


- 


222 

Virginia College Building Authority 


4 


- 


- 


- 


- 


4 

Nonmajor Component Units 


549,342 


433,903 


42,945 


19,720 


101,348 


1,147,258 

Total Component Units 

$ 

552,297 

$_ 

435,972 

JL 

42,945 

JL 

56,192 

$ 

101,348 

$ 

1,188,754 


Note (1): Foundations represent FASB reporting entities defined in Note 1 .B. 

Note (2): Other Accounts Payable for the Virginia Lottery represents administrative costs payable. Other Accounts Payable for the Virginia 
College Savings Plan represents program distributions payable. 

Note (3): Other Accounts Payable for the Pension and Other Employee Benefit Trust Fund consists of $25,969 (dollars in thousands) in 
investment management expense and $15,980 (dollars in thousands) in program benefit liabilities. 

Note (4): Fiduciary liabilities of $53,179 (dollars in thousands) are not included in the Government-wide Statement of Net Position. In 
addition, governmental fund liabilities of $106,466 (dollars in thousands) are included in the Government-wide Statement of Net 
Position, but excluded from the above amounts. 


Commonwealth of Virginia 143 












25. OTHER LIABILITIES 


The following table (dollars in thousands) summarizes Other Liabilities as of June 30, 2015. 

Primary Government 








Nonmajor 




Commonwealth 


Federal 

Governmental 

Virginia 


General 

Transportation 

— 

Trust 

Funds 

Lottery 

Lottery Prizes Payable 

$ 

$ 

. 

$ 

. 

$ 

$ 64,093 

Due to Program Participants, Escrows, 








and Providers 

- 


- 


- 

- 

- 

Medicaid Payable 

327,235 


- 


329,749 

- 

- 

Family Access to Medical Insurance 








Security Payable 

3,843 


- 


7,137 

- 

- 

Accrued Interest Payable 

- 


- 


- 

- 

- 

Tax Refunds Payable 

452,946 


- 


- 

- 

- 

Insurance Carrier Surety Deposit 

- 


- 


- 

- 

- 

Deposits Pending Distribution 

3,712 


1,175 


- 

3,085 

- 

Car Tax Payable 

263,025 


- 


- 

- 

- 

Other Liabilities 

369 


- 


- 

412 

- 

Total Other Liabilities 

$ 1,051,130 

$ 

1,175 

JL 

336,886 

$ 3,497 

$ 64,093 


Primary Government 


Lottery Prizes Payable 

Virginia 

College 

Savings 

Plan 

$ 

Unemployment 

Compensation 

$ 

Nonmajor 

Enterprise 

Funds 

$ 

Internal 

Service 

Funds (1) 

$ 

$ 

Private 

Purpose 

Trust 

Funds 

Due to Program Participants, Escrows, 
and Providers 

1,058 

37,663 




3,786 

Medicaid Payable 

- 

- 

- 

- 


- 

Family Access to Medical Insurance 

Security Payable 

. 

_ 

. 

. 


. 

Accrued Interest Payable 

- 

- 

5,863 

- 


- 

Tax Refunds Payable 

- 

- 

- 

- 


- 

Insurance Carrier Surety Deposit 

- 

- 

- 

- 


- 

Deposits Pending Distribution 

- 

- 

178 

300 


- 

Car Tax Refund Payable 

- 

- 

- 

- 


- 

Other Liabilities 

- 

- 

139 

917 


- 

Total Other Liabilities 

$ 1,058 

$ 37,663 

$ 6,180 

$ 1,217 

Jt 

3,786 


Note (1): The Other Liabilities amount of $917 (dollars in thousands) is due to third party clearing amounts that have decreased from the prior 
year due to the closing of an account therefore less timing issues with checks clearing the bank. 


144 Commonwealth of Virginia 












Primary Government 


Pension 



and Other 



Employee 


Total 

Benefit 

Agency 

Primary 

Trust Funds (2) 

Funds 

Government (3) 


Lottery Prizes Payable 

Due to Program Participants, Escrows, 

$ 

- 

$ 

- 

$ 

64,093 

and Providers 


- 


44,118 


86,625 

Medicaid Payable 

Family Access to Medical Insurance 


- 


- 


656,984 

Security Payable 


- 


- 


10,980 

Accrued Interest Payable 


- 


- 


5,863 

Tax Refunds Payable 


- 


- 


452,946 

Insurance Carrier Surety Deposit 


- 


438,824 


438,824 

Deposits Pending Distribution 


- 


78,171 


86,621 

Car Tax Refund Payable 


- 


- 


263,025 

Other Liabilities 


307,834 


1,956 


311,627 

Total Other Liabilities 

$ 

307,834 

$ 

563,069 

$ 

2,377,588 


Note (2): Other Liabilities of $307,834 (dollars in thousands) reported in Pension and Other Employee Benefit Trust Funds are made up of 
$35,846 (dollars in thousands) in funds held for the Commonwealth Health Research Fund; $34,298 (dollars in thousands) in other 
funds managed by the System; $227,347 (dollars in thousands) in pending investment transactions, including $166,200 (dollars in 
thousands) in hedge fund margin collateral, $60,425 (dollars in thousands) for net foreign exchange contracts, $722 (dollars in 
thousands) in other investment payables; $2,034 (dollars in thousands) in other payables related to the System benefit plans; 
$2,901 (dollars in thousands) in foreign taxes payables related to the System benefit plans, and $5,408 (dollars in thousands) in 
interest and dividends payable related to the System benefit plans. 

Note (3): Fiduciary liabilities of $874,689 (dollars in thousands) are not included in the Government-wide Statement of Net Position. 

Governmental fund liabilities of $154,412 (dollars in thousands) are included in the Government-wide Statement of Net Position, but 
excluded from the above amounts. 


Component Units 


Virginia 

Virginia 


Virginia 



Housing 

Public 

Virginia 

College 

Non major 

Total 

Development 

School 

Resources 

Building 

Component 

Component 

Authority 

Authority 

Authority 

Authority 

Units 

Units 


Accrued Interest Payable 

Other Liabilities 

Deposits Pending Distribution 
Short-term Debt 

Grants Payable 

$ 

57,042 $ 

225 

464,600 

58,331 $ 

27,040 $ 

21,104 

80,568 

$ 

69,290 $ 

222,350 

444,942 

117,161 

5,527 

292,271 

243,679 

444,942 

581,761 

5,527 

Total Other Liabilities 

$ 

521,867 $ 

58,331 $ 

48,144 $ 

80,568 

$ 

859,270 $ 

1,568,180 


Commonwealth of Virginia 145 








Medicaid Payable 

Medicaid Payable represents services rendered but not 
billed by providers and potential liability resulting from 
cost reports not settled as of year-end. Providers 
subject to cost settlement are paid in the interim based 
on established per diem or diagnosis related group rates 
for services. 

The Department of Medical Assistance Services 
(DMAS) estimates, based on past experience, the total 
amount of Medicaid claims that will be paid from the 
Medicaid program in the future which relate to services 
provided before year-end. At June 30, 2015, the 
estimated liability related to Medicaid claims totaled 
$657.0 million. Of this amount, $327.2 million is 
reflected in the General Fund (major governmental) and 
$329.8 million in the Federal Trust Special Revenue 
Fund (major governmental). 

Family Access to Medical Insurance Security 
Payable 

DMAS estimates the total amount of claims that will be 
paid from the Family Access to Medical Insurance 
Security program in the future which relate to services 
provided before year-end. At June 30, 2015, the 
estimated liability related to claims totaled $11.0 million. 
Of this amount, $3.9 million is reflected in the General 
Fund (major governmental) and $7.1 million in the 
Federal Trust Special Revenue Fund (major 
governmental). 

Tax Refunds Payable 

Tax refunds payable represent refunds due on individual 
tax returns filed for the calendar year ended on or 
before December 31, 2014, and on business tax returns 
filed for corporate fiscal years ending on or before 
June 30, 2015. The individual tax return filing deadline is 
May 1 of each year for the preceding calendar year. The 
corporate tax return filing deadline is the 15th day of the 
fourth month following the close of the corporate fiscal 
year. 

Car Tax Refund Payable 

During the year ended June 30, 1998, the General 
Assembly passed the Personal Property Tax Relief Act. 
Under the terms of this legislation, the Commonwealth 
assumed financial responsibility for a portion, ranging 
from 12.5 percent to 70.0 percent, of the personal 
property taxes assessed by localities. 

During 2004, the General Assembly modified this 
legislation. Chapter 1 of Special Session 1 (2004) 
established a $950.0 million limit on the amount the 
Commonwealth would appropriate for personal property 
tax relief, beginning in tax year 2006. It further 
established that each county, city, and town would 
receive a fixed percentage of the $950.0 million, with 
payments to begin on or after July 1, 2006 (fiscal year 
2007). The accrued liability amount of $263.0 million 
reflects payments owed to localities as of June 30 and 
paid in July. 


Termination Benefits 

During fiscal year 2015, the Commonwealth laid off 467 
employees. The affected employees had the option of 
volunteering for enhanced retirement benefits or 
severance benefits. The enhanced retirement benefits 
option was elected by 142 employees, and the 
remaining 325 employees elected severance benefits. 
The severance benefits include salary payments based 
on years of service and insurance premium payments 
for health and life insurance. All severance benefits 
were initiated during fiscal year 2015 and will end no 
later than June 30, 2016. The benefit cost expended 
and the outstanding liability as of June 30, 2015 for 
governmental funds, are $4.5 million and $1.2 million, 
respectively. Since the severance benefits last for a 
maximum of 12 months, discounting of future cash flows 
is unnecessary. Additionally, the estimated payments 
are calculated using the Department of Human 
Resources’ Termination Benefits Calculator and actual 
costs. 

Short-term Debt 

Short-term debt results from borrowings from 
anticipation notes, lines of credit, and similar loans with 
parties external to the primary government. The primary 
government’s policy is to disclose activity related to 
short-term borrowings occurring during the fiscal year. 
For fiscal year 2015, the primary government’s agencies 
did not participate in short-term borrowings with external 
parties. 

Various higher education institutions and foundations 
(nonmajor component units) have short-term debt 
totaling $117.1 million. Of this amount, $89.0 million 
provides bridge financing for capital projects. The 
remaining short-term debt is for working capital, 
property acquisition, and operating costs. The Virginia 
Housing Development Authority (major component unit) 
has borrowing from lines of credit in the amount of 
$464.6 million. The Library of Virginia Foundation 
(nonmajor component unit) has a $33,500 note with a 
related party. 

The balance of Other Liabilities is spread among various 
other funds. 


146 Commonwealth of Virginia 




26. LONG-TERM LIABILITIES 

Commonwealth bonds are issued pursuant to Section 9 
of Article X of the Constitution of Virginia. Section 9(a) 
bonds have been issued to redeem previous debt 
obligations. Section 9(b) bonds have been authorized by 
the citizens of Virginia through bond referenda to 
finance capital projects. These bonds are retired 
through the use of state appropriations. Section 9(c) 
bonds are issued to finance capital projects which, when 
completed, will generate revenue to repay the debt. 
Section 9(a), 9(b), and 9(c) bonds are tax-supported 
general obligation bonds and are backed by the full faith 
and credit of the Commonwealth. No other long-term 
debt obligations are backed by the full faith and credit of 
the Commonwealth. 

Section 9(d) bonds are revenue bonds that are not 
backed by the full faith and credit of the Commonwealth. 
These bonds are not general obligation bonds and are 
not deemed to constitute a legal liability of the 
Commonwealth. However, this debt may be supported 
by state appropriations in whole or in part, as in the 
case of certain debt of the Virginia Port Authority 
(nonmajor component unit) and the Commonwealth 
Transportation Board (primary government). Other 9(d) 
revenue bonds are payable from general revenues of 
the component units, or from revenues of specific 
revenue-producing capital projects such as the teaching 
hospitals, dormitories, student centers, and dining halls 
at the various colleges and universities (nonmajor 
component units). 


The 9(d) Route 460 Funding Corporation of Virginia 
Bonds (primary government) are special, limited 
obligations of the Corporation, secured by a gross 
revenue pledge and payable solely from revenues. 

Certain 9(d) bonds are considered, with 9(a), 9(b), and 
9(c) bonds, to be tax-supported debt of the 
Commonwealth. Tax-supported debt includes all bonds 
and short-term debt for which debt service payments 
are made or are ultimately pledged to be made from tax 
revenues (net of sinking fund requirements). 

Other 9(d) revenue bonds are considered debt not 
supported by taxes. For this debt, the Commonwealth 
has no direct or indirect pledge of tax revenues. In 
certain limited cases, the Commonwealth has made a 
moral obligation pledge. A government’s moral 
obligation pledge provides a deficiency make-up for 
bondholders in the event pledged revenues prove to be 
insufficient. If a revenue deficiency exists, monies held 
in a debt service reserve fund are used to pay 
bondholders. The issuer then requests that the 
legislative body provide an appropriation to replenish 
the reserve fund before subsequent debt service is due. 
The legislative body may, but is not legally required to, 
replenish the reserve fund. 


Commonwealth of Virginia 147 




The following schedule presents the total long-term liabilities of the Commonwealth, and the portion of these amounts which 
are due within one year, as reported on the Government-wide Statement of Net Position. 


Total Long-term Liabilities 

_June 30, 2015_ 


(Dollars in Thousands) 

Balance 

At 

June 30 

Amount Due 

Within 

One Year 

Primary Government: 

Governmental Activities:(1) 

General Obligation Bonds: (2) 

9(b) Public Facilities (3) 

$ 642,181 

$ 60,795 

9(c) Parking Facilities (3) 

16,036 

722 

9(c) Transportation Facilities (3) 

17,154 

2,520 

Total General Obligation Bonds 

675,371 

64,037 

Nongeneral Obligation Bonds- 9(d): 

Transportation Debt (3) (4) 

3,288,321 

183,890 

Virginia Public Building Authority (3) 

2,623,447 

160,470 

Total Nongeneral Obligation Bonds 

5,911,768 

344,360 

Other Long-term Obligations: 

Net Pension Liability 

4,133,117 

- 

OPEB Liability 

654,173 

- 

Compensated Absences 

311,406 

168,728 

Capital Lease Obligations 

57,948 

12,941 

Pollution Remediation Obligations 

11,954 

2,041 

Notes Payable 

307 

192 

Installment Purchase Obligations 

113,373 

12,290 

Economic Development Authority Obligations (3) 

51,249 

5,590 

Other Liabilities 

33,155 

4,800 

Total Other Long-term Obligations 

5,366,682 

206,582 

Total Governmental Activities (3) 

11,953,821 

614,979 

Business-type Activities: (1) (5) 

Nongeneral Obligation Bonds- 9(d): 

Route 460 Funding Corporation of Virginia Bonds 

320,110 

320,110 

Other Long-term Obligations: 

Net Pension Liability 

125,294 

- 

OPEB Liability 

22,051 

- 

Compensated Absences 

10,123 

5,426 

Capital Lease Obligations 

5,708 

365 

Tuition Benefits Payable 

2,116,769 

239,234 

Lottery Prizes Payable 

136,222 

18,064 

Total Other Long-term Obligations 

2,416,167 

263,089 

Total Business-type Activities 

2,736,277 

583,199 

Total Primary Government 

14,690,098 

1,198,178 


148 Commonwealth of Virginia 






Total Long-term Liabilities 

_June 30, 2015_ 


(Dollars in Thousands) 

Balance 

At 

June 30 

Amount Due 

Within 

One Year 

Component Units: 



General Obligation Bonds: (2) 



Higher Education Fund - 9(c) Bonds (3) 

936,857 

51,653 

Nongeneral Obligation Bonds: 



Higher Education Institutions - 9(d) (3) (5) 

2,038,579 

24,891 

Virginia College Building Authority (3) 

3,520,214 

208,055 

Virginia Port Authority (3) (6) 

545,102 

15,295 

Virginia Housing Development Authority (3) (5) 

4,498,847 

240,617 

Virginia Resources Authority (3) (7) 

3,509,028 

153,865 

Virginia Public School Authority (3) (5) 

3,551,741 

234,559 

Hampton Roads Sanitation District Commission (5) 

748,397 

28,135 

Virginia Biotechnology Research Park Authority (3) 

30,619 

3,525 

Foundations (5) (8) 

999,302 

30,359 

Total Nongeneral Obligation Bonds 

19,441,829 

939,301 

Other Long-term Obligations: 



Net Pension Liability (9) (10) 

2,537,695 

- 

OPEB Liability (11) 

830,507 

- 

Compensated Absences 

288,320 

206,034 

Capital Lease Obligations 

77,456 

6,012 

Notes Payable (5) 

2,083,619 

162,671 

Installment Purchase Obligations 

63,812 

12,671 

Trust and Annuity Obligations (5) (12) 

1,752 

- 

Other Liabilities (5) 

299,960 

68,036 

Total Other Long-term Obligations (Excluding Foundations) 

6,183,121 

455,424 

Other Long-term Obligations (Foundations): (5) (8) 



Compensated Absences 

14,596 

11,382 

Capital Lease Obligations 

251 

158 

Notes Payable 

272,503 

7,623 

Trust and Annuity Obligations (12) 

80,377 

5,266 

Other Liabilities 

318,919 

18,981 

Total Other Long-term Obligations - Foundations 

686,646 

43,410 

Total Other Long-term Obligations 

6,869,767 

498,834 

Total Component Units 

27,248,453 

1,489,788 

Total Long-term Liabilities 

$ 41,938,551 

$ 2,687,966 


1. Pursuant to GASB Statement No, 34, governmental activities include internal service funds. Business-type activities are considered enterprise 
funds. 

2. Total general obligation debt of the Commonwealth is $1.6 billion. 

3. Amounts are net of any unamortized discounts and premiums. 

4. This debt includes $736.2 million that is not supported by taxes. 

5. This debt is not supported by taxes. 

6. This debt includes $256.7 million that is not supported by taxes. 

7. This debt is not supported by taxes; however, $877.9 million is considered moral obligation debt. 

8. Foundations represent FASB reporting entities defined in Note 1 .B. 

9. This includes net pension liabilities that do not relate to the Virginia Retirement System’s State Plan from the Flampton Roads Sanitation 
District Commission and the Virginia Port Authority of $27.5 million and $14.0 million, respectively. This debt is not supported by taxes. 

10. This does not include net pension liabilities from fiduciary funds of $3.3 million. 

11. This includes OPEB obligations that do not relate to the Virginia Retirement System from University of Virginia of $47.2 million and Virginia 
Port Authority of $1.4 million. It does not include OPEB obligations from fiduciary funds of $589,370. 

12. These generally represent split-interest agreements that represent donor contributed assets with the requirement that an annual distribution be 
made to the donor or specified beneficiary. The annual distributions are usually for a fixed dollar amount or a fixed percentage of the trust's 
fair market value. The present value of these commitments is reported as Trust and Annuity Obligations. 


Commonwealth of Virginia 149 




Primary Government 
Transportation Facilities Debt 

Transportation Facilities Bonds include $17.2 million of 
Section 9(c) general obligation bonds and $3.3 billion of 
Transportation Facilities Section 9(d) debt. The Section 
9(d) debt includes $2.6 billion of Section 9(d) revenue 
bonds, $30.6 million of outstanding Commonwealth of 
Virginia Federal Highway Reimbursement Anticipation 
Notes, and $705.6 million of Grant Anticipation Revenue 
Vehicles (GARVEES) in addition to the outstanding 
Section 9(d) revenue bonds. 9(c) principal and interest 
requirements for the current year totaled $3.2 million. 
9(d) principal and interest requirements for the current 
year totaled $313.7 million. The Section 9(c) 
Transportation Facilities Bonds were issued to fund the 
construction and improvement of the George P. 
Coleman Bridge. The Section 9(d) Transportation 
Facilities Bonds were issued to fund the construction of 
State Route 28, U.S. Route 58, the Northern Virginia 
Transportation District Program, and the Oak Grove 
Connector (Chesapeake). The Commonwealth of 
Virginia Federal Highway Reimbursement Anticipation 
Notes were issued to finance various capital 
transportation projects throughout the Commonwealth. 
The interest rates for these bonds range from 3.0 
percent to 5.0 percent and the issuance date was 
September 28, 2005. The GARVEES were issued to 
finance various Federal Aid Transportation projects 
throughout the Commonwealth. The interest rates for 
these bonds range from 1.0 percent to 5.0 percent and 
the issuance dates range from March 15, 2012 to 
November 21,2013. 

On December 3, 2014, the Commonwealth 
Transportation Board issued $270.0 million of 
Commonwealth of Virginia Capital Projects 
Transportation Revenue Bonds, Series 2014. Series 
2014 will be maturing in annual installments on May 15 
in the years 2015 to 2039 and interest is payable on 
May 15 and November 15 at rates varying from 2.0 to 
5.0 percent. The net proceeds of the Series 2014 bonds 
will be used to pay for the costs of certain transportation 
projects in the Commonwealth and certain costs related 
to the issuance of the 2014 bonds. 

The following schedules detail the annual funding 
requirements necessary to amortize Transportation 
Facilities 9(c) bonds and 9(d) debt. Pursuant to the 
American Recovery and Reinvestment Act, the 
Commonwealth expects to receive an interest subsidy 
to reimburse interest payments of $101.9 million for 
Build America Bonds (BABs) issued. The BABs are 
applicable to Commonwealth of Virginia Transportation 
Series 2010A Capital Project Revenue Bonds and 
Series 2009A Northern Virginia Transportation District 
Revenue Bonds. 


9(c) TRANSPORTATION FACILITIES BONDS 
Debt Service Requirements to Maturity 


Maturity 


Principal 


Interest 


Total 

2016 

$ 

2,520,000 

$ 

665,850 

$ 

3,185,850 

2017 


2,620,000 


568,200 


3,188,200 

2018 


2,730,000 


463,400 


3,193,400 

2019 


2,840,000 


354,200 


3,194,200 

2020 


2,950,000 


240,600 


3,190,600 

2021-2025 


3,065,000 


122,600 


3,187,600 

Add: 







Unamortized Premium 


429,382 


- 


429,382 

Total 

$_ 

17,154,382 

$ 

2,414,850 

_$_ 

19,569,232 


9(d) TRANSPORTATION FACILITIES DEBT 
Debt Service Requirements to Maturity 


Maturity 

Principal 

Interest 

Total 

2016 

$ 183,890,000 $ 

139,192,991 

$ 323,082,991 

2017 

161,275,000 

131,071,326 

292,346,326 

2018 

168,210,000 

123,382,794 

291,592,794 

2019 

166,720,483 

115,822,876 

282,543,359 

2020 

148,703,337 

107,904,646 

256,607,983 

2021-2025 

755,510,875 

433,296,809 

1,188,807,684 

2026-2030 

656,465,576 

255,612,440 

912,078,016 

2031-2035 

566,315,000 

118,131,088 

684,446,088 

2036-2040 

182,420,000 

13,146,475 

195,566,475 

Less: 




Unamortized 




Discount 

(95,612) 

- 

(95,612) 

Add: 




Accretion on Capital 




Appreciation 




Bonds 

23,138,940 

- 

23,138,940 

Unamortized Premium 

275,767,391 

- 

275,767,391 

Total 

$ 3,288,320,990 $ 

1,437,561,445 

$ 4,725,882,435 


Fairfax Economic Development Authority 
Obligations 

In fiscal year 2006, the Fairfax County Economic 
Development Authority (EDA) issued Section 9(d) 
revenue bonds to pay for the Commonwealth’s (VDOT) 
costs of the planning, design and construction of a 
transportation infrastructure and related public safety 
operations complex to be developed on the contiguous 
sites in the county commonly referred to as “Camp 30” 
for the joint use of VDOT and the county. In fiscal year 
2014, Fairfax County EDA issued a series of revenue 
refunding bonds, which partially refunded Series 2006 
revenue bonds. The Commonwealth's obligation is set 
out in a payment agreement between Fairfax County 
EDA and the Commonwealth of Virginia, Department of 
Transportation, in which the Commonwealth agrees to 
make payments equal to the debt service from amounts 
appropriated by the General Assembly. The interest 
rates for these bonds range from 1.0 percent to 5.0 
percent and the issue dates were April 12, 2006 and 
March 26, 2014. The principal and interest requirements 
for the current year totaled $7.8 million. The following 
schedule details the annual funding requirements 
necessary to repay these bonds. 


150 Commonwealth of Virginia 




FAIRFAX COUNTY ECONOMIC DEVELOPMENT AUTHORITY 
_ Debt Service Requirements to Maturity _ 


9(d) ROUTE 460 FUNDING CORPORATION OF VIRGINIA BONDS 
_ Debt Service Requirements to Maturity _ 


Maturity 


Principal 


Interest 


Total 

2016 

$ 

5,590,000 

$ 

2,237,000 

$ 

7,827,000 

2017 


5,870,000 


1,957,500 


7,827,500 

2018 


6,165,000 


1,664,000 


7,829,000 

2019 


6,470,000 


1,355,750 


7,825,750 

2020 


6,795,000 


1,032,250 


7,827,250 

2021-2025 


13,850,000 


1,028,250 


14,878,250 

Unamortized FTemium 


6,509,361 


- 


6,509,361 

Total 

$_ 

51,249,361 

$_ 

9,274,750 

$ 

60,524,111 


Route 460 Funding Corporation of Virginia Debt 

At June 30, 2015, Route 460 Funding Corporation of 
Virginia (nonmajor enterprise) bonds included $231.6 
million of Current Interest bonds, $61.8 million of Capital 
Appreciation bonds, and $8.2 million of accreted value 
in Capital Appreciation bonds. No principal payments 
were required for fiscal year 2015; however, interest 
payments of $11.7 million were paid during fiscal year 
2015. An interest payment of $5.9 million is due July 1, 
2015, and is therefore recorded as accrued interest 
payable. The Route 460 Funding Corporation of 
Virginia issued $231.6 million of Toll Road Senior 
Revenues Bonds (Current Interest Bonds), Series 
2012A. Under the original terms, Series 2012A would 
have matured in annual installments on July 1 in the 
years 2045 to 2052 and interest would have been 
payable on January 1 and July 1 at rates varying from 
5.0 percent to 5.1 percent beginning July 1, 2013 
through July 1, 2052. The proceeds of the series 2012A 
bonds were to be used to pay a portion of the costs of 
the design, construction, and financing of the Project 
including, without limitation, to pay interest payable on 
the series 2012A bonds through January 1,2018, and to 
pay certain costs of issuance of the Series 2012 Senior 
Lien Bonds or as otherwise permitted by the Indenture. 
The Route 460 Funding Corporation of Virginia also 
issued $61.8 million of Toll Road Senior Revenues 
Bonds (Capital Appreciation Bonds), Series 2012B. 
Under the original terms, the Series 2012B would have 
matured in annual installments on July 1 in the years 
2024 to 2045. The Series 2012B Bonds would not bear 
current interest, but each Series 2012B would have 
accreted in value, compounded semiannually from its 
date of issuance on January 1 and July 1 at interest 
rates varying from 4.0 percent to 5.2 percent and 
interest would have been payable only upon maturity or 
early redemption date. The proceeds of the series 
2012B bonds would have been used to pay a portion of 
the costs of the design, construction, and financing of 
the Project including, without limitation, and to pay 
certain costs of issuance of the Series 2012 Senior Lien 
Bonds or as otherwise permitted by the Indenture. 

As discussed in Note 31, the Corporation’s continuing 
operations will cease during fiscal year 2016. As 
discussed in Note 41, the outstanding bonds were paid 
in September 2015; therefore, all amounts are reported 
as due within one year. 


Maturity 


Principal 

Interest 

Total 

2016 

$ 

445,865,000 $ 

5,862,956 $ 

451,727,956 

Less: 

Unaccreted Capital 
Appreciation 
Bonds 


(144,345,011) 


(144,345,011) 

Add: 

Unamortized FTemium 


18,589,523 


18,589,523 

Total 


320,109,512 $ 

5,862,956 $ 

325,972,468 


Public Facilities Bonds 

Section 9(b) general obligation bonds consist of Public 
Facilities Bonds, Series 2006B, Series 2007A, Series 
2007B, Series 2008A, Series 2008B, Series 2009A, 
Series 2009D Refunding, Series 2009E, Series 2012A 
Refunding, Series 2013B Refunding, Series 2014B 
Refunding, and Series 2015B Refunding. Bonds were 
issued to fund construction projects for higher 
educational institutions, behavioral health, and/or park 
facilities. The Series 2009D bonds were issued to 
advance refund outstanding Series 2004A, Series 
2005A, and Series 2006B bonds. The Series 2012A 
bonds were issued to advance refund outstanding 
Series 2002, Series 2003A, Series 2004A, and Series 
2005A bonds. The Series 2013B bonds were issued to 
advance refund outstanding Series 2005A, Series 
2006B, Series 2007A, and Series 2007B. The Series 
2014B bonds were issued to advance refund 
outstanding Series 2004B Refunding. The Series 
2015B bonds were issued to advance refund certain 
maturities of outstanding Series 2007B, Series 2008A, 
and Series 2008B bonds. Principal and interest 
requirements for the current year totaled $94.6 million. 
The interest rates for all bonds range from 3.4 percent 
to 5.0 percent and the issuance dates range from 
November 15, 2006, to May 6, 2015. The following 
schedule details the annual funding requirements 
necessary to repay these bonds. Pursuant to the 
American Recovery and Reinvestment Act, the 
Commonwealth expects to receive an interest subsidy 
to reimburse interest payments of $4.0 million for Build 
America Bonds (BABs) issued. The BABs are 
applicable to Series 2009E Public Facilities Revenue 
Bonds. 


9(b) PUBLIC FACILITIES BONDS 
Debt Service Requirements to Maturity 


Maturity 


Principal 


Interest 


Total 

2016 

$ 

60,795,000 

$ 

26,422,473 

$ 

87,217,473 

2017 


53,110,000 


23,565,345 


76,675,345 

2018 


49,120,000 


20,974,503 


70,094,503 

2019 


48,220,000 


18,718,147 


66,938,147 

2020 


48,280,000 


16,426,345 


64,706,345 

2021-2025 


228,310,000 


48,026,955 


276,336,955 

2026-2030 


79,485,000 


7,189,065 


86,674,065 

Add: 







Unamortized FTemium 


74,860,819 




74,860,819 

Total 

$_ 

642,180,819 

$_ 

161,322,833 

$ 

803,503,652 


Commonwealth of Virginia 151 






Parking Facilities Bonds 

Section 9(c) general obligation bonds consist of Parking 
Facilities Bonds, Series 2009B and 2009D Refunding, 
and 2012A Refunding. The Series 2009B bonds were 
issued to fund the construction of a new 1,000 vehicle 
parking structure at 7th and Franklin Streets. The Series 
2009D Refunding bonds were issued to advance refund 
outstanding Series 2004A bonds. The Series 2012A 
Refunding bonds were issued to advance refund 
outstanding Series 2002 Refunding and Series 2004A 
bonds. The interest rate for these bonds is 5.0 percent, 
and the issuance dates range from October 21,2009, to 
March 7, 2012. Current year principal and interest 
requirements totaled $1.6 million. The following 
schedule details the annual funding requirements 
necessary to repay these bonds. 


9(c) PARKING FACILITIES BONDS 
Debt Service Requirements to Maturity 


Maturity 


Principal 


Interest 


Total 

2016 

$ 

722,093 

$ 

704,073 

$ 

1,426,166 

2017 


890,000 


667,610 


1,557,610 

2018 


940,000 


623,110 


1,563,110 

2019 


985,000 


576,110 


1,561,110 

2020 


1,035,000 


526,860 


1,561,860 

2021-2025 


5,559,045 


1,818,064 


7,377,109 

2026-2030 


4,025,000 


515,250 


4,540,250 

Add: 







Unamortized Premium 


1,880,172 




1,880,172 

Total 


16,036,310 

JL_ 

5,431,077 

_$_ 

21,467,387 


Virginia Public Building Authority 

Virginia Public Building Authority Section 9(d) bonds 
consist of 2005A Refunding, 2005B Refunding, 2005C, 
2005D, 2006A, 2006B, 2007A, 2008B, 2009A, 2009B, 
2009C, 2009D Refunding, 2010A, 2010B-1, 2010B-2, 
201 OB-3 Refunding, 2011A, 201 IB, 2012A Refunding, 
2013A, 2013B Refunding, 2014A, 2014B, 2014C 
Refunding, 2015A, and 2015B Refunding. All bonds 
were issued for the purpose of constructing, improving, 
furnishing, maintaining, and acquiring public buildings 
for the use of the Commonwealth and also to reimburse 
localities, regional jail authorities or other combination of 
localities under the Regional Jail Financing Program. 
The Series 2005B bonds were issued to advance refund 
outstanding Series 1996A, Series 1998B, and Series 
1999A bonds. The Series 2009D bonds were issued to 
advance refund outstanding series 2001A and 2002A 
Revenue bonds. The Series 201 OB-3 bonds were 
issued to advance refund outstanding series 2002A and 
2004B Revenue bonds. The Series 2012A bonds were 
issued to advance refund outstanding series 2004B and 
2005C Revenue bonds. The Series 2013B bonds were 
issued to advance refund 2006A and 2006B revenue 
bonds. The Series 2014C bonds were issued to 
advance refund outstanding Series 2004A Refunding, 
2004B, 2004C Refunding, and 2004D Refunding bonds, 
and certain maturities of the 2005C, 2006A, 2006B, and 
2007A bonds. The interest rates for all fixed rate bonds 
range from 0.2 percent to 5.9 percent and the issuance 
dates range from March 1, 2005, to June 9, 2015. The 
Series 2005D bonds are variable rate bonds and the 
rates are reset weekly by the remarketing agent. 
Current year principal and interest requirements totaled 


$283.1 million. The following schedule details the 
annual funding requirements necessary to repay these 
bonds. Pursuant to the American Recovery and 
Reinvestment Act, the Commonwealth expects to 
receive an interest subsidy to reimburse interest 
payments of $81.3 million for Build America Bonds 
(BABs) issued. The BABs are applicable to Series 2010 
Revenue Bonds. 


9(d) VIRGINIA PUBLIC BUILDING AUTHORITY BONDS 
_ Debt Service Requirements to Maturity _ 


Maturity 


Principal 


Interest 


Total 

2016 

$ 

160,470,000 

$ 

101,511,008 

$ 

261,981,008 

2017 


177,020,000 


99,321,360 


276,341,360 

2018 


160,770,000 


91,145,746 


251,915,746 

2019 


145,340,000 


83,775,314 


229,115,314 

2020 


146,580,000 


76,881,112 


223,461,112 

2021-2025 


721,355,000 


284,391,530 


1,005,746,530 

2026-2030 


636,335,000 


124,780,953 


761,115,953 

2031-2035 


252,590,000 


22,307,974 


274,897,974 

2036-2040 


17,000,000 


340,000 


17,340,000 

Add: 







Unamortized Premium 


205,987,462 


- 


205,987,462 

Total 

JL 

2,623,447,462 

$ 

884,454,997 


3,507,902,459 


Component Units 

Higher Education Institution Bonds 

Higher Education Institution Bonds are comprised of 
both 9(c) general obligation bonds and 9(d) revenue 
bonds. Section 9(d) bonds are from several sources as 
shown on the following schedule (dollars in thousands). 

College and university bonds backed by 
pledge of general revenue or revenue 
from specific revenue-producing 

capital projects $ 1,531,950 

College and university debt backed 
exclusively by pledged revenues 

of an institution _506,629 


Total Higher Education Institution 

9(d) debt $ 2,038,579 


The interest rates for these bonds range from 0.1 
percent to 6.4 percent and the issuance dates range 
from April 16, 2003, to June 11, 2015. The Virginia 
College Building Authority Series 2006B and 2006C 
bonds, the Virginia Commonwealth University Series 
2012A and 2012B bonds, and the Virginia 
Commonwealth University Health System Authority (a 
blended component unit of the Virginia Commonwealth 
University - nonmajor) Series 2013A and 2013B bonds 
are variable rate bonds and the rates are reset weekly 
by the remarketing agent. 

The following schedules detail the annual funding 
requirements necessary to amortize Higher Education 
Institution 9(c) and 9(d) bonds. Pursuant to the 
American Recovery and Reinvestment Act, the 
Commonwealth expects to receive an interest subsidy 
to reimburse interest payments of $322.8 million for 
Build America Bonds (BABs) issued. The BABs are 
applicable to General Obligation Series 2010A Bonds, 


152 Commonwealth of Virginia 




Series 2009F and 2010B 21 st Century Virginia College 
Building Authority Education Facilities Bonds, and the 
University of Virginia’s Series 2009 and 2010 General 
Revenue Bonds. 


9(c) HIGHER EDUCATION INSTITUTION BONDS 
Debt Service Requirements to Maturity 


Maturity 


Principal 


Interest 


Total 

2016 

$ 

51,652,907 

$ 

37,060,140 

$ 

88,713,047 

2017 


52,115,000 


34,782,191 


86,897,191 

2018 


49,200,000 


32,406,271 


81,606,271 

2019 


49,400,000 


30,206,921 


79,606,921 

2020 


49,120,000 


28,005,901 


77,125,901 

2021-2025 


253,785,955 


106,906,426 


360,692,381 

2026-2030 


224,175,000 


51,984,864 


276,159,864 

2031-2035 


111,070,000 


14,478,135 


125,548,135 

2036-2040 


12,295,000 


1,366,530 


13,661,530 

Add: 







Unamortized Premium 


84,043,125 




84,043,125 

Total 


936,856,987 


337,197,379 


1,274,054,366 


9(d) HIGHER EDUCATION INSTITUTION BONDS 


Debt Service Requirements to Maturity 

Maturity 


Principal 


Interest (1) 

Total 

2016 

$ 

24,890,774 

$ 

83,394,733 

$ 108,285,507 

2017 


19,554,307 


83,799,076 

103,353,383 

2018 


20,296,785 


83,320,031 

103,616,816 

2019 


20,694,933 


82,803,293 

103,498,226 

2020 


21,558,771 


82,199,743 

103,758,514 

2021-2025 


251,967,043 


381,520,826 

633,487,869 

2026-2030 


138,894,036 


352,525,888 

491,419,924 

2031-2035 


160,731,311 


334,364,324 

495,095,635 

2036-2040 


640,860,000 


281,461,342 

922,321,342 

2041-2045 


648,185,000 


87,123,300 

735,308,300 

Add: 






Unamortized Premium 


90,946,362 



90,946,362 

Total 

T 

2,038,579,322 

T 

1,852,512,556 

$ 3,891,091,878 


Note(1): The future interest requirements exclude any net 
payments associated with hedging derivative 
instruments. See Note 14 for more details on hedging 


derivative instruments. 

9(d) VIRGINIA COLLEGE BUILDING AUTHORITY BONDS 

Debt Service Requirements to Maturity 

Maturity 


Principal 


Interest 


Total 

2016 

$ 

208,055,000 

$ 

136,164,991 

$ 

344,219,991 

2017 


218,935,000 


131,833,075 


350,768,075 

2018 


206,850,000 


122,092,585 


328,942,585 

2019 


193,235,000 


112,798,668 


306,033,668 

2020 


192,165,000 


104,117,294 


296,282,294 

2021-2025 


931,750,000 


395,675,052 


1,327,425,052 

2026-2030 


888,710,000 


204,905,604 


1,093,615,604 

2031-2035 


428,555,000 


41,754,463 


470,309,463 

Add: 







Unamortized Premium 


251,959,224 




251,959,224 

Total 

T 

3,520,214,224 

T" 

1,249,341,732 

T“ 

4,769,555,956 


Various higher education institutions’ foundations 
(component units) and a museum foundation 
(component unit) have bonds outstanding as of year- 
end. The purpose of a majority of these bonds is for 
construction, property acquisition, and defeasance of 
prior debt. The following schedule details the future 
principal payments. 

FOUNDATIONS' BONDS (1) 


Debt Service Requirements to Maturity 

Maturity 


Principal 

2016 

$ 

30,359,431 

2017 


29,512,494 

2018 


56,465,986 

2019 


107,436,446 

2020 


35,378,900 

Thereafter 


740,148,760 

Total 

jr 

999,302,017 


Note (1): Foundations represent FASB reporting entities defined in 
Note I.B. 


Virginia Port Authority 

The Virginia Port Authority (VPA) (nonmajor) has issued 
Section 9(d) revenue bonds and notes pursuant to 
powers provided to its board of commissioners by the 
Code of Virginia. The interest rates for these bonds 
range from 0.7 percent to 5.5 percent, and the issuance 
dates range from April 14, 2005, to June 23, 2015. 
Series 2006A bonds were issued to advance refund 
$22.9 million of outstanding Series 1996 bonds. Series 
2010 bonds were issued to currently refund in full the 
outstanding principal amount of the Authority’s Series 
2009 Bond Anticipation Note. Series 2012 bonds were 
issued to currently refund in full the outstanding principal 
amount of the Authority’s Commonwealth Port Fund 
Revenue Bonds and to pay all or a portion of the 
expenses incurred with respect to the issuance of the 
Series 2012 Bonds and the refunding of the Series 2002 
Bonds. Series 2012B and 2012C bonds were issued to 
pay the cost of refunding all or a portion of the Series 
2005A and 2005B bonds, and to pay costs of issuance 
of the 2012B and 2012C bonds. Series 2013 bonds 
were issued to pay the costs of refunding all or a portion 
of Series 2003 and 2006 bonds and series 2013 
issuance costs. Series 2015A bonds were issued to pay 
the costs of refunding all of the remaining Series 2003 
and 2006 bonds, and to pay costs of issuance of the 
Series 2015A bonds. Series 2015B bonds were issued 
to pay the costs of refunding a portion of the remaining 
Series 2007 bonds, and to pay costs of issuance of the 
Series 2015B bonds. The following schedule details the 
annual funding requirements necessary to amortize 
VPA bonds. 


Commonwealth of Virginia 153 




9(d) VIRGINIA PORT AUTHORITY DEBT 
Debt Service Requirements to Maturity 


Maturity 


Principal 


Interest 


Total 

2016 

$ 

15,295,000 

$ 

17,826,202 

$ 

33,121,202 

2017 


17,070,000 


19,990,624 


37,060,624 

2018 


17,605,000 


19,583,500 


37,188,500 

2019 


17,965,000 


19,216,775 


37,181,775 

2020 


18,350,000 


18,786,266 


37,136,266 

2021-2025 


99,735,000 


85,565,536 


185,300,536 

2026-2030 


117,405,000 


67,030,966 


184,435,966 

2031-2035 


119,205,000 


39,140,813 


158,345,813 

2036-2040 


85,830,000 


12,162,250 


97,992,250 

2041-2045 


13,180,000 


329,500 


13,509,500 

Add: 







Unamortized Premium 


23,462,404 




23,462,404 

Total 


545,102,404 


299,632,432 

$ 

844,734,836 


Virginia Housing Development Authority 

The Virginia Housing Development Authority (VHDA) 
(major) issued Section 9(d) revenue bonds. The interest 
rates for these bonds range from 2.1 percent to 6.8 
percent and the origination dates range from March 20, 
2002, to May 12, 2015. The following schedule details 
the annual funding requirements necessary to amortize 
these bonds. 


9(d) VIRGINIA HOUSING DEVELOPMENT AUTHORITY BONDS 
_Debt Service Requirements to Maturity_ 


Maturity 


Principal 


Interest 


Total 

2016 

$ 

240,616,781 

$ 

185,951,229 

$ 

426,568,010 

2017 


199,710,000 


177,972,284 


377,682,284 

2018 


199,800,000 


170,957,105 


370,757,105 

2019 


202,190,000 


163,661,886 


365,851,886 

2020 


213,150,000 


155,606,908 


368,756,908 

2021-2025 


776,725,000 


669,541,405 


1,446,266,405 

2026-2030 


602,550,000 


529,370,049 


1,131,920,049 

2031-2035 


666,237,064 


391,209,544 


1,057,446,608 

2036-2040 


661,013,873 


228,300,079 


889,313,952 

2041-2045 


726,294,252 


77,690,972 


803,985,224 

2046-2050 


10,585,000 


490,136 


11,075,136 

Less: 







Unamortized 







Discount 


(2,339,297) 




(2,339,297) 

Add: 







Unamortized 







Premium 


2,314,584 




2,314,584 

Total 


4,498,847,257 


2,750,751,597 

JL 

7,249,598,854 


Virginia Resources Authority 

The Virginia Resources Authority (VRA) (major) issued 
Section 9(d) revenue bonds. The interest rates for these 
bonds range from 0.5 percent to 6.3 percent and the 
origination dates range from March 1, 2000, to May 28, 
2015. The following schedule details the annual funding 
requirements necessary to amortize these bonds. 


9(d) VIRGINIA RESOURCES AUTHORITY BONDS 
Debt Service Requirements to Maturity 


Maturity 

Principal 

Interest 

Total 

2016 

$ 153,865,000 $ 

141,423,435 

$ 295,288,435 

2017 

171,840,000 

135,283,214 

307,123,214 

2018 

183,400,000 

127,519,303 

310,919,303 

2019 

164,995,000 

119,708,985 

284,703,985 

2020 

171,815,000 

112,194,643 

284,009,643 

2021-2025 

835,330,000 

443,537,350 

1,278,867,350 

2026-2030 

797,025,000 

254,151,812 

1,051,176,812 

2031-2035 

486,075,000 

111,999,800 

598,074,800 

2036-2040 

209,615,000 

38,789,779 

248,404,779 

2041-2045 

73,970,000 

4,519,323 

78,489,323 

Less: 




Un accreted 




Capital 




Appreciation 




Bonds 

(34,935,096) 

- 

(34,935,096) 

Add: 




Unamortized 




Premium 

296,032,824 

- 

296,032,824 

Total 

$ 3,509,027,728 $ 

1,489,127,644 

$ 4,998,155,372 


Virginia Public School Authority 

The Virginia Public School Authority (VPSA) (major) 
issued Section 9(d) revenue bonds. The interest rates 
for these bonds range from 0.0 percent to 5.5 percent, 
and the origination dates range from December 21, 
2001, to May 14, 2015. The following schedule details 
the annual funding requirements necessary to amortize 
these bonds. Pursuant to the American Recovery and 
Reinvestment Act, the Commonwealth expects to 
receive an interest subsidy to reimburse interest 
payments of $185.1 million for Qualified School 
Construction Bonds (QSCBs) issued. The QSCBs are 
applicable to Series 2010-1, 2011-1, 2011-2, and 2012- 
1 Revenue Bonds. 


9(d) VIRGINIA PUBLIC SCHOOL AUTHORITY BONDS 
Debt Service Requirements to Maturity 


Maturity 


Principal 


Interest 


Total 

2016 

$ 

234,559,060 

$ 

141,746,377 

$ 

376,305,437 

2017 


231,028,003 


131,136,329 


362,164,332 

2018 


225,305,000 


120,101,355 


345,406,355 

2019 


216,655,000 


109,512,075 


326,167,075 

2020 


213,055,000 


99,502,943 


312,557,943 

2021-2025 


922,956,000 


358,759,651 


1,281,715,651 

2026-2030 


819,440,000 


158,247,343 


977,687,343 

2031-2035 


394,010,000 


33,263,289 


427,273,289 

2036-2040 


43,750,000 


3,963,222 


47,713,222 

2041-2045 


3,755,000 


104,163 


3,859,163 

Add: 







Unamortized Premium 


247,227,603 


- 


247,227,603 

Total 

JL 

3,551,740,666 

JL 

1,156,336,747 

JL 

4,708,077,413 


154 Commonwealth of Virginia 




Hampton Roads Sanitation District Commission 

The Hampton Roads Sanitation District Commission 
(nonmajor) issued bonds under a Master Trust 
Indenture and a Trust Agreement dated December 1, 
1993 and March 1, 2008. The interest cost for these 
bonds range from 0.1 percent to 5.9 percent. The 
following schedule details the annual funding 
requirements necessary to amortize these bonds. 


HAMPTON ROADS SANITATION DISTRICT COMMISSION 
_Debt Service Requirements to Maturity_ 


Maturity 


Principal 


Interest 


Total 

2016 

$ 

28,135,000 

$ 

29,751,000 

$ 

57,886,000 

2017 


22,871,000 


29,029,000 


51,900,000 

2018 


23,327,000 


28,326,000 


51,653,000 

2019 


23,905,000 


27,360,000 


51,265,000 

2020 


24,788,000 


26,417,000 


51,205,000 

2021-2025 


133,731,000 


116,189,000 


249,920,000 

2026-2030 


150,428,000 


85,965,000 


236,393,000 

2031-2035 


144,715,000 


53,161,000 


197,876,000 

2036-2040 


110,915,000 


18,381,000 


129,296,000 

2041-2045 


45,385,000 


2,092,000 


47,477,000 

Add: 







Unamortized Premium 


40,197,000 


- 


40,197,000 

Total 

T 

748,397,000 

T" 

416,671,000 

T" 

1,165,068,000 


Virginia Biotechnology Research Partnership 
Authority 

The Virginia Biotechnology Research Partnership 
Authority (nonmajor) consists of Series 2009 
Commonwealth of Virginia Lease Revenue bonds. 
Coupon interest rates range from 3.0 percent to 5.0 
percent. 


VIRGINIA BIOTECH RESEARCH PARTNERSHIP AUTHORITY 
_Debt Service Requirements to Maturity_ 


Maturity 


Principal 


Interest 


Total 

2016 

$ 

3,525,000 

$ 

1,231,950 

$ 

4,756,950 

2017 


3,665,000 


1,088,150 


4,753,150 

2018 


3,815,000 


938,550 


4,753,550 

2019 


3,990,000 


762,500 


4,752,500 

2020 


4,200,000 


557,750 


4,757,750 

2021-2025 


9,055,000 


458,375 


9,513,375 

Add: 







Unamortized Premium 


2,368,683 


- 


2,368,683 

Total 


30,618,683 

$ 

5,037,275 

_$_ 

35,655,958 


Total principal outstanding at June 30, 2015, on all 
component unit bonds amounted to $20.4 billion. 


Commonwealth of Virginia 155 




The following schedule summarizes the changes in long-term liabilities: 


(Dollars in Thousands) 


Primary Government 
Governmental Activities: 


Schedule of Changes in Long-term Debt and Obligations (1) (2) 


Balance Issuances Retirements 

July 1 and Other and Other Subtotal 

as restated (3) Increases Decreases _June 30 


Long-term Debt Bearing the Pledge of the 
Full Faith and Credit of the Commonwealth: 

General Obligation Bonds - 9(b) and 9(c): 


Riblic Facilities Bonds 

$ 

643,175 

$ 

102,520 

$ 

(178,375) $ 

567,320 

Parking Facilities Bonds 


15,004 


- 


(848) 

14,156 

Transportation Facilities Bonds 


19,130 


- 


(2,405) 

16,725 

Add: Unamortized Premium 


65,560 


23,003 


(11,393) 

77,170 

Total General Obligation Bonds 


742,869 


125,523 


(193,021) 

675,371 

Long-term Debt/Obligations Not Bearing the Pledge 








of the Full Faith and Credit of the Commonwealth: 








Transportation Facilities Bonds 


2,887,746 


274,979 


(173,215) 

2,989,510 

Virginia Public Building Authority Bonds 


2,227,555 


828,710 


(638,805) 

2,417,460 

Economic Development Authority Obligations 


50,165 


- 


(5,425) 

44,740 

Add: Unamortized Premium 


427,431 


126,735 


(65,902) 

488,264 

Accretion on Capital Appreciation Bonds 


20,759 


2,380 


- 

23,139 

Less: Unamortized Discount 


(100) 


4 


- 

(96) 

Installment Purchase Obligations 


113,936 


16,020 


(16,583) 

113,373 

Notes Payable - Aviation 


529 


- 


(222) 

307 

Compensated Absences 


321,520 


192,671 


(202,785) 

311,406 

Capital Lease Obligations 


60,916 


9,305 


(12,273) 

57,948 

Net Pension Liability 


4,842,060 


- 


(708,943) 

4,133,117 

OPEB Liability 


568,764 


85,409 


- 

654,173 

Pollution Remediation Liability 


13,186 


- 


(1,232) 

11,954 

Other 


36,632 


- 


(3,477) 

33,155 

Total Long-term Debt/Obligations Not Bearing the Hedge 








of the Full Faith and Credit of the Commonw ealth 


11,571,099 


1,536,213 


(1,828,862) 

11,278,450 

Total Governmental Activities 


12,313,968 


1,661,736 


(2,021,883) 

11,953,821 

Business-type Activities: 








Long-term Debt/Obligations Not Bearing the Pledge 








of the Full Faith and Credit of the Commonwealth: 








Non-General Obligation Bonds - 9(d) 








Route 460 Funding Corporation of Virginia Bonds 


445,865 


- 


- 

445,865 

Add: Unamortized Premium 


19,131 


- 


(541) 

18,590 

Less: Unaccreted Capital Appreciation Bonds 


(147,691) 


3,346 


- 

(144,345) 

Capital Lease Obligations 


6,072 


- 


(364) 

5,708 

Compensated Absences 


10,102 


2,614 


(2,593) 

10,123 

Net Psnsion Liability 


142,765 


- 


(17,471) 

125,294 

OPEB Liability 


18,709 


3,403 


(61) 

22,051 

Lottery Prizes Payable 


152,693 


578 


(17,049) 

136,222 

Tuition Benefits Payable 


2,140,430 


135,063 


(158,724) 

2,116,769 

Total Business-type Activities 


2,788,076 


145,004 


(196,803) 

2,736,277 

Total Primary Government 

_$ _ 

15,102,044 

$ 

1,806,740 

$ 

(2,218,686) $ 

14,690,098 


156 Commonwealth of Virginia 






Balance 

Due Within 

Foundations (4) 

June 30 

One Year 


$ 

$ 

567,320 

14,156 

16,725 

77,170 

$ 

60,795 

722 

2,520 


- 

675,371 


64,037 


2,989,510 

183,890 

2,417,460 

160,470 

44,740 

5,590 

488,264 

- 

23,139 

- 

(96) 

- 

113,373 

12,290 

307 

192 

311,406 

168,728 

57,948 

12,941 

4,133,117 

- 

654,173 

- 

11,954 

2,041 

33,155 

4,800 

11,278,450 

550,942 

11,953,821 

614,979 



- 


445,865 


445,865 


- 


18,590 


18,590 


- 


(144,345) 


(144,345) 


- 


5,708 


365 


- 


10,123 


5,426 


- 


125,294 


- 


- 


22,051 


- 


- 


136,222 


18,064 


- 


2,116,769 


239,234 


- 


2,736,277 


583,199 

$ 

- 

$ 

14,690,098 

$ 

1,198,178 


Continued on next page 


Commonwealth of Virginia 157 












(Dollars in Thousands) 


Schedule of Changes in Long-term Debt and Obligations (1) (2) 

(continued) 

Balance Issuances Retirements 

Julyl and Other and Other Subtotal 

as restated (3) Increases Decreases _June 30 


Component Units 

Long-term Debt Bearing the Pledge of the 
Full Faith and Credit of the Commonwealth: 


General Obligation Bonds - Higher Education 9(c) (5) 

$ 

925,086 

$ 

187,184 

$ 

(175,413) 

$ 

936,857 

Long-term Debt/Obligations Not Bearing the Pledge 









of the Full Faith and Credit of the Commonwealth: 









Bonds (5) (6) 


18,223,278 


3,330,829 


(3,111,580) 


18,442,527 

Installment Purchase Obligations 


76,526 


2,834 


(15,548) 


63,812 

Capital Lease Obligations 


82,667 


564 


(5,775) 


77,456 

Notes Payable 


2,072,530 


400,148 


(389,059) 


2,083,619 

Compensated Absences 


281,692 


288,575 


(281,947) 


288,320 

Net Pension Liability 


2,946,922 


1,788 


(411,015) 


2,537,695 

OPEB Liability 


701,715 


128,792 


- 


830,507 

Trust and Annuity Obligations 


3,687 


- 


(1,935) 


1,752 

Other (7) 


269,525 


1,034,407 


(1,003,972) 


299,960 

Total Component Units 

$ 

25,583,628 

$ 

5,375,121 

$ 

(5,396,244) 

$ 

25,562,505 


Note (1) Pursuant to GASB Statement No. 34, governmental activities include internal service funds. Business-type activities are 
considered enterprise funds. 

Note (2) Payments on bonded debt that pertain to the Commonwealth's governmental activities are made through the debt service 

funds. Payments for installment purchases, compensated absences, capital leases, pension, and other obligations that pertain 
to the Commonwealth's governmental activities are made through the general and all special revenue funds, excluding the 
Literary Fund (major). Internal service funds predominantly serve the governmental funds. Accordingly, long-term liabilities for 
these funds are included as part of the total for governmental activities. Enterprise funds, or business-type activities, are self- 
supporting funds. Accordingly, long-term liabilities are paid from each respective fund. 

Note (3) As a result of the implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions - an 

amendment of GASB Statement No. 27, and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent 
to the Measurement Date - an amendment of GASB Statement No. 68, the following items have been restated: pension 
liability for governmental activities by $2,727,257 (dollars in thousands); business-type activities by $85,365 (dollars in 
thousands); and nonmajor component units by $1,880,284 (dollars in thousands). Additionally, Capital Lease Obligations, 
Notes Payable, and Compensated Absences of the component units have been restated by $478 (dollars in thousands), 

$5,492 (dollars in thousands), and $1,455 (dollars in thousands) respectively for nonmajor component units. 

Note (4) Foundations represent FASB reporting entities defined in Note I.B. 

Note (5) Amounts are net of any unamortized discounts and premiums. 

Note (6) Bonds payable of component units have been restated for by $8,516 (dollars in thousands) for Virginia College Building 
Authority (major) to reflect the removal of unamortized premiums related to bonds that matured in prior years. 

Note (7) Other Long-term Liabilities have been restated for the following reclassifications among liability line items: $52 (dollars in 

thousands) from Other Liabilities for the Virginia Flousing Development Authority (major); and $17,522 (dollars in thousands) 
from Deposits Pending Distribution and $2,909 (dollars in thousands) from Pension Liability for nonmajor component units. 


158 Commonwealth of Virginia 





gain of $23.3 million discounted at the rate of 2.1 
percent. 




Balance 

Due Within 

Foundations (4) 


June 30 

One Year 

$ 

$ 

936,857 

$ 51,653 



999,302 


19,441,829 


939,301 


- 


63,812 


12,671 


251 


77,707 


6,170 


272,503 


2,356,122 


170,294 


14,596 


302,916 


217,416 


- 


2,537,695 


- 


- 


830,507 


- 


80,377 


82,129 


5,266 


318,919 


618,879 


87,017 

$ 

1,685,948 

$ 

27,248,453 

$ 

1,489,788 


Bond and Note Defeasance 
Primary Government 

In September 2014, the Virginia Public Building 
Authority (VPBA) issued $298.4 million of Series 2014C 
Public Facilities Revenue Refunding Bonds with a true 
interest cost (TIC) of 2.1 percent to refund $319.4 
million of certain outstanding bonds. The bonds that 
were refunded include Public Facilities Revenue Bonds, 
Series 2004A, 2004B, 2004C, 2004D, 2005C, 2006A, 
2006B, and 2007A. The net proceeds from the sale of 
the Refunding Bonds of $341.1 million (after payment of 
underwriter’s fees and other issuance costs) were 
deposited in an irrevocable trust with an escrow agent to 
provide for all future debt service and redemption 
premiums on the refunded bonds. The debt defeasance 
resulted in an accounting loss of $10.7 million. It will, 
however, reduce total debt service payments over the 
next 14 years by $27.6 million, resulting in an economic 
gain of $27.1 million discounted at the rate of 2.3 
percent. 

In May 2015, the Commonwealth issued $214.3 million 
General Obligation Refunding Bonds, Series 2015B, 
pursuant to Sections 9(b) and 9(c) of Article X of the 
Constitution of Virginia, with a true interest cost (TIC) of 
2.3 percent to refund $229.6 million of certain 
outstanding bonds. The bonds that were refunded 
include $118.4 million of outstanding Higher Education 
Institution Bonds, Series 2006B, 2007B, and 2008B and 
$111.2 million of Public Facilities Bonds, Series 2007B, 
2008A, and 2008B. The net proceeds from the sale of 
the Refunding Bonds of $258.2 million (after payment of 
underwriter’s fees and other issuance costs) were 
deposited in an irrevocable trust with an escrow agent to 
provide for all future debt service and redemption 
premiums on the refunded bonds. The debt defeasance 
resulted in an accounting loss of $24.1 million. It will, 
however, reduce total debt service payments over the 
next 22 years by $28.2 million, resulting in an economic 


In June 2015, VPBA issued $134.7 million of Series 
2015B Public Facilities Revenue Refunding Bonds with 
a true interest cost (TIC) of 2.4 percent to refund $136.7 
million of certain outstanding bonds. The bonds that 
were refunded include Public Facilities Revenue Bonds, 
Series 2005A, 2005B, 2006A, and 2008B. The net 
proceeds from the sale of the Refunding Bonds of 
$151.5 million (after payment of underwriter’s fees and 
other issuance costs) were deposited in an irrevocable 
trust with an escrow agent to provide for all future debt 
service and redemption premiums on the refunded 
bonds. The debt defeasance resulted in an accounting 
loss of $13.7 million. It will, however, reduce total debt 
service payments over the next 14 years by $11.8 
million resulting in an economic gain of $10.2 million 
discounted at the rate of 2.9 percent. 


Component Units 

Higher education institutions (nonmajor) participate in 
the Virginia College Building Authority Pooled Bond 
Program. In November 2014, the Virginia College 
Building Authority (VCBA) (major) issued $186.0 million 
of Series 2014B Pooled Bond Program refunding 
bonds. The bonds were issued to refund $8.8 million of 
its 2004A bonds, $25.3 million of its 2004B bonds, $15.0 
million of its 2005A bonds, $57.8 million of its 2006A 
bonds, and $90.5 million of its 2007A bonds. The net 
proceeds from the sale of the refunding bonds of $215.0 
million were deposited in an irrevocable trust with an 
escrow agent to provide for all future debt service on the 
defeased bonds. This defeasance resulted in an 
accounting loss of $15.4 million. Total debt service 
payments over the next 22 years will be reduced by 
$39.8 million resulting in a present value savings of 
$36.6 million discounted at the rate of 2.2 percent. 

In April 2015, VCBA issued $204.9 million of Series 
2015B 21st Century Program refunding bonds. The 
bonds were issued to refund $10.2 million of its 2007B 
bonds, $46.8 million of its 2008A bonds, and $123.4 
million of its 2009A bonds. The net proceeds from the 
sale of the refunding bonds of $204.6 million were 
deposited in an irrevocable trust with an escrow agent to 
provide for all future debt service on the defeased 
bonds. This defeasance resulted in an accounting loss 
of $16.7 million. Total debt service payments over the 
next 12 years will be reduced by $17.2 million resulting 
in a present value savings of $15.0 million discounted at 
the rate of 2.5 percent. 

The University of Virginia (nonmajor) issued $291.6 
million of Series 2015A-1,2015A-2, and 2015B bonds to 
refund $217.9 million of commercial paper and $109.7 
million of Series 2003A and 2005 bonds. For additional 
information regarding these refundings, see the 
institution’s individually published financial statements. 

GASB Statement No. 7, Advance Refundings Resulting 
in Defeasance of Debt, provides that refunded debt and 
assets placed in escrow for the payment of related debt 
service be excluded from the financial statements. As of 
June 30, 2015, there were $765.1 million in bonds from 
the primary government that have been refunded and 


Commonwealth of Virginia 159 




defeased in-substance from the governmental activities 
column by placing existing assets and the proceeds of 
new bonds in irrevocable trusts to provide for all future 
debt service payments. In addition, there were $1.9 
billion in bonds and notes outstanding considered 
defeased from the component units. 

Arbitrage Rebate 


Capital Leases 

The Commonwealth leases buildings and equipment 
under various agreements that are accounted for as 
capital leases. The lease agreements are for various 
terms and all leases contain nonappropriation clauses 
indicating that continuation of the lease is subject to 
funding by the General Assembly. 


The Tax Reform Act of 1986 requires that governmental 
entities issuing tax-exempt debt calculate and rebate 
arbitrage earnings to the federal government. The U.S. 
Treasury has issued regulations on calculating the 
rebate amount and complying with the provisions of the 
Tax Reform Act of 1986. Governmental issuers must 
comply with the rebate regulations in order for their 
bonds to maintain tax-exempt status. The regulations 
require the excess of the aggregate amount earned on 
investments purchased with bond proceeds over the 
amount that would have been earned if the proceeds 
were invested at a rate equal to the bond yield, to be 
rebated to the federal government. Income earned on 
excess earnings is also subject to rebate. Rebate 
liability, if any, must be paid every five years over the life 
of the bonds. Governmental issuers may elect to pay a 
penalty in lieu of rebate. Some bonds may be exempt 
from the rebate requirements if they qualify for certain 
regulatory exceptions. If the issuer meets one of the 
exceptions, the issuer retains any arbitrage earnings. 
Rebate and penalty payments are calculated and paid 
as required by law on bond issues that do not qualify for 
an exception. 

Although rebatable arbitrage need only be calculated for 
tax purposes every fifth year that debt is outstanding, 
and consistent with modified accrual basis of 
accounting, is not recognized as a liability in 
governmental funds until amounts actually become due 
and payable, a liability is recognized in accrual basis 
government-wide statements as soon as the underlying 
event has occurred. Accordingly, as of June 30, 2015, 
the Commonwealth has recognized a government-wide 
liability of $1.2 million and the Virginia Resources 
Authority (major component unit) has recognized a 
liability of $177,630. 

Amounts remitted to the federal government for rebate 
liability are generally paid from earnings derived from 
the issue. However, if all proceeds (including earnings) 
have been expended and depending on the type of 
issue, it may be necessary to use project revenues or 
general or nongeneral fund appropriations to satisfy any 
rebate liability. During fiscal year 2015, no rebate 
payments were owed on the Commonwealth’s General 
Obligation Bonds, Virginia Public Building Authority, 
Commonwealth Transportation Board, or the Virginia 
College Building Authority 21 st Century or Pooled Bond 
Programs, Virginia Public School Authority, or the 
Virginia Port Authority. 


Gross minimum lease payments, together with the 
present value of the net minimum lease payments as of 
June 30, 2015, are shown in the following table (dollars 
in thousands). 



Governmental 

Activities 

Business-Type 

Activities 


Component 
Units (1) 

2016 

$ 17,011 

$ 560 

$ 

8,664 

2017 

9,996 

575 


7,049 

2018 

9,010 

589 


6,892 

2019 

6,880 

604 


6,247 

2020 

6,685 

619 


6,233 

2021-2025 

18,659 

3,333 


26,187 

2026-2030 

6,127 

3,771 


25,846 

2031-2035 

2,145 

4,267 


13,560 

2036-2040 

2,329 

4,828 


714 

2041-2045 

891 

2,114 


650 

2046-2050 

- 

- 


1,281 

Total Gross Minimum 

Lease Payments 

79,733 

21,260 


103,323 

Less: Amount Representing 

Executory Costs 

(6,874) 

- 


- 

Net Minimum Lease Payments 

72,859 

21,260 


103,323 

Less: Amount 

Representing Interest 

(14,911) 

(15,552) 


(25,867) 

Present Value of Net 

Minimum Lease Payments 

$ 57,948 

$ 5,708 

$ 

77,456 

Note (1): The above 

amounts exclude capital lease obligations 


of foundations. 


Foundations (2) 


2016 

$ 

164 

2017 


65 

2018 


24 

2019 


8 

Net Minimum 

Lease Payments 


261 

Less: Amount 

Representing Interest 


(10) 

Present Value of Net 

Minimum Lease Payments 

$ 

251 


Note (2): Foundations represent FASB reporting entities 
defined in Note I.B. 


160 Commonwealth of Virginia 




At June 30, 2015, assets purchased under capital 
leases were included in depreciable capital assets as 
follows (dollars in thousands). The amounts are net of 
accumulated depreciation where applicable. For a 
portion of these assets, ownership will pass to the 
Commonwealth at the end of the lease term. 



Buildings 

Equipment 


Total 

Governmental Activities: 

Gross Capital Assets 

$ 176,097 

$ 4,128 

$ 

180,225 

Less: Accumulated 
Depreciation 

(72,466) 

(2,710) 


(75,176) 

Total Governmental 

Activities 

$ 103,631 

$ 1,418 

$ 

105,049 


Business-Type Activities: 

Gross Capital Assets 

Less: Accumulated 

Depreciation 

$ 

8,800 

(940) 

$ 

- 

$ 

8,800 

(940) 

Total Business-Type 







Activities 

$ 

7,860 

$ 

- 

$ 

7,860 

Component Units: 







Gross Capital Assets 

$ 

131,872 

$ 

5,527 

$ 

137,399 

Less: Accumulated 







Depreciation 


(46,023) 


(3,249) 


(49,272) 

Subtotal (excluding 







Foundations) 


85,849 


2,278 


88,127 

Foundations: 







Gross Capital Assets 


- 


733 


733 

Less: Accumulated 







Depreciation 


- 


(469) 


(469) 

Subtotal Foundations 




264 


264 

Total Component 







Units (3) 

$ 

85,849 

$ 

2,542 

$ 

88,391 


Note (3): Land purchased under capital leases by the 
University of Virginia (nonmajor) is $8,095 (dollars in 
thousands). 


Notes Payable 

Notes Payable consist of several items as shown in the 
following schedule (dollars in thousands): 


Primary Government 

Aviation Note $ 307 

Installment Notes _ 113,373 

Total Primary Government _ 113,680 

Component Units 

Virginia Public School Authority 185,850 

Virginia Resources Authority 325 

Nonmajor Component Units 1,897,444 

Installment Notes 63,812 

Subtotal (excluding Foundations) 2,147,431 

Foundations: 

Notes Payable 272,503 

Subtotal - Foundations 272,503 

Total Component Units 2,419,934 

Total Notes Payable $ 2,533,614 


loan was to finance and refinance grants-in-aid made to 
the Peninsula Airport Commission to provide funding for 
capital improvements at the Newport 
News/Williamsburg International Airport. The principal 
amount shall be paid semi-annually with the final 
payment due in 2017. 

The Virginia Public School Authority (major component 
unit) notes of $185.9 million are for the School 
Equipment Financing Notes Educational Technology 
program. The note proceeds were used to make grants 
to school divisions for the purchase of educational 
technology equipment. The notes will be repaid from 
appropriations to be made by the Virginia General 
Assembly from the Literary Fund (major special 
revenue). 

The Virginia Resources Authority (major component 
unit) notes of $325,103 are Equipment and Term 
Financing loans. 

An additional amount of $1.9 billion is comprised 
primarily of higher education institutions’ (nonmajor 
component units) promissory notes with the Virginia 
College Building Authority (VCBA) (major component 
unit) to finance the construction of various higher 
education facilities. Interest rates range from 1.0 percent 
to 5.6 percent and shall be paid semi-annually. The final 
principal payment is due in 2045. The following higher 
education institutions (nonmajor component units) 
reported notes payables primarily for construction: 
Virginia Commonwealth University Health System 
Authority (Authority) (a blended component unit of the 
Virginia Commonwealth University - nonmajor 
component unit) $25.5 million, which includes $11.7 
million reported by the University Health Services (a 
component unit of the Authority); Virginia State 
University $1.1 million; Norfolk State University $21,785; 
and the Institute for Advanced Learning and Research 
$786,731. 

Various foundations (component units) have notes 
outstanding as of year-end. The purpose of a majority 
of these notes is for property acquisition, working 
capital, and construction. Future principal payments as 
of June 30, 2015, are shown in the following table 
(dollars in thousands). 

Foundations' Notes Payable (Component Units) (1) 


Maturity 


Principal 

2016 

$ 

7,623 

2017 


96,948 

2018 


37,444 

2019 


42,218 

2020 


5,191 

Thereafter 


83,079 

Total 

$ 

272,503 


Note (1): Foundations represent FASB reporting entities defined 
in Note I.B. 


The Department of Aviation (primary government) Note 
represents a loan agreement with the Virginia 
Resources Authority (major component unit) with an 
outstanding balance of $306,763. The purpose of the 


Commonwealth of Virginia 161 




Installment purchase obligations have been entered into 
by agencies and institutions of the Commonwealth. 
These agreements, other than those in the component 
units and certain institutions of higher education, contain 
nonappropriation clauses indicating that continuation of 
the installment purchase obligations is subject to 
funding by the General Assembly. Installment purchase 
obligations represent $177.2 million of the total 
outstanding debt of the Commonwealth. Presented in 
the following tables are repayment schedules for 
installment purchase obligations as of June 30, 2015. 


Lottery Prizes Payable 

Lottery prizes are paid in 20, 25, 26, or 30 installments. 
The first installment is paid on the day the prize is 
claimed. The subsequent annual payments are funded 
with U.S. Treasury STRIPS purchased by the Virginia 
Lottery. For Life prizes payable represent estimated 
prizes payable monthly, quarterly or annually for the life 
of the winner based on life expectancy tables from the 
Virginia Bureau of Insurance, and funded with a pool of 
U.S. Treasury STRIPS. 


Installment Purchase Obligations - Governmental Funds 


June 30, 2015 

Maturity 


Principal 


Interest 


Total 

2016 

$ 

12,289,270 

$ 

3,243,564 

$ 

15,532,834 

2017 


12,080,965 


2,859,375 


14,940,340 

2018 


12,020,121 


2,543,967 


14,564,088 

2019 


12,269,062 


2,219,999 


14,489,061 

2020 


11,869,296 


1,891,649 


13,760,945 

2021-2025 


39,862,443 


5,350,992 


45,213,435 

2026-2030 


12,981,584 


812,936 


13,794,520 

Total 

$ 

113,372,741 

$ 

18,922,482 

$ 

132,295,223 


Installment Purchase Obligations - Component Units 

Maturity 

Principal 

Interest 

Total 

2016 $ 

12,670,375 

$ 1,263,862 $ 

13,934,237 

2017 

12,102,542 

1,039,070 

13,141,612 

2018 

11,840,351 

808,807 

12,649,158 

2019 

9,471,176 

565,622 

10,036,798 

2020 

5,068,702 

388,725 

5,457,427 

2021-2025 

11,429,160 

809,378 

12,238,538 

2026-2030 

1,229,662 

64,215 

1,293,877 

Total $ 

63,811,968 

$ 4,939,6/9 $ 

68,751,647 


The foundations (component units) had no installment 
purchase obligations as of June 30, 2015. 


Lottery prizes payable represent the future annual prize 
payments valued at cost plus accrued interest (present 
value of securities held to maturity) of the investment 
securities funding the payments. 

Lottery prizes payable for the fiscal year ended June 30, 
2015, are shown in the following table: 




Jackpot 

Win For Life 


Total 

Due w ithin 






one year 

$ 

13,139,234 

$ 4,924,950 

$ 

18,064,184 

Due in 






subsequent 

years 


56,898,262 

61,259,570 


118,157,832 

Total (present 
value) 

Add: 


70,037,496 

66,184,520 


136,222,016 

Interest to 






Maturity 


26,462,504 

35,377,480 


61,839,984 

Lottery Prizes 
Payable at 
Maturity 


96,500,000 

$ 101,562,000 

JL 

198,062,000 


Tuition Benefits Payable 

The Virginia College Savings Plan administers the 
Virginia529 prePAID program. Virginia529 prePAID 
offers contracts at actuarially determined amounts that 
provide for future tuition and mandatory fee payments at 
state higher education institutions. The contract 
provisions also allow the benefits to be used for private 
or out-of-state institutions at differing amounts. 

At June 30, 2015, tuition benefits payable of $2.1 billion 
have been recorded for the Virginia529 prePAID 
program on the statement of net position for the 
actuarially determined present value of future 
obligations anticipated for payment of benefits and 
administrative expenses for the Virginia529 prePAID 
program. In addition, a receivable in the amount of 
$209.3 million has been recorded to reflect the 
actuarially determined present value of future payments 
anticipated from contract holders. 


162 Commonwealth of Virginia 




27. OTHER REVENUE 


The following table (dollars in thousands) summarizes Other Revenue for the fiscal year ended June 30, 2015. 



Assessments 

Fines, 







and 

Forfeitures, 

Receipts 


Private 




Receipts for 

Court Fees, 

from 


Gifts, 




Support of 

Penalties, 

Cities 


Grants, 




Special 

and 

Counties, 


and 


Sales of 


Services 

Escheats 

and Towns 


Contracts 


Property 

Primary Government: 








General 

$ 1,614 

$ 217,674 

$ 16,534 

$ 

775 

$ 

28,956 

Major Special Revenue Funds: 








Commonw ealth Transportation 

19,637 

11,167 

140,421 


9,696 


886 

Federal Trust 

- 

5,984 

- 


- 


74 

Literary 

- 

64,239 

- 


- 


- 

Nonmajor Governmental Funds 

115,731 

52,997 

67,945 


7,507 


8,075 

Nonmajor Enterprise Funds 

- 

14,008 

- 


- 


- 

Private Purpose Trust Funds 

- 

- 

- 


- 


- 

Pension and Other Employee Benefit Trust Funds 

- 

- 

- 


- 


- 

Total Primary Government 

$ 136,982 

$ 366,069 

$ 224,900 

$ 

17,978 

$ 

37,991 



Tobacco 

Master 

Settlement 


Taxes 


E-Z Pass 


Other (1) 


Total 

Other 

Revenue 

Primary Government: 










General 

$ 48,207 

$ 

- 

$ 

- 

$ 

149,455 

$ 

463,215 

Major Special Revenue Funds: 










Commonw ealth Transportation 

- 


- 


17,131 


7,430 


206,368 

Federal Trust 

- 


- 


- 


111,323 


117,381 

Literary 

- 


- 


- 


308,847 


373,086 

Nonmajor Governmental Funds 

- 


- 


- 


101,922 


354,177 

Nonmajor Enterprise Funds 

- 


4,281 


- 


995 


19,284 

Private Purpose Trust Funds 

- 


- 


- 


13 


13 

Pension and Other Employee Benefit Trust Funds 

- 


- 


- 


2,164 


2,164 

Total Primary Government 

$ 48,207 

$ 

4,281 

$ 

17,131 

$ 

682,149 

$ 

1,535,688 


Note(1): $103,008 (dollars in thousands) is related to prior year expenditures refunded in the current fiscal year for the General Fund. 

$95,587 (dollars in thousands) is related to prior year expenditures refunded in the current fiscal year in the Federal Trust Fund. 
$308,700 (dollars in thousands) of the total amount recorded for the Literary Fund is related to unclaimed property. $31,079 (dollars 
in thousands) is related to indirect costs and court collection fees in the Other Special Revenue Fund, and the remaining $70,843 
(dollars in thousands) is related to other miscellaneous charges and fees in the nonmajor governmental funds. 


Commonwealth of Virginia 163 












28. PRIZES AND CLAIMS 


The following table summarizes Prizes and Claims Expense for the fiscal year ended June 30, 2015. 


(Dollars in Thousands) 







Total 





Lottery 


Prizes 



Insurance 


Prize 


and 



Claims 


Expense 


Claims 

Proprietary Funds: 







Major Enterprise Funds: 







Virginia Lottery 

$ 

- 

$ 

1,104,203 

$ 

1,104,203 

Unemployment Compensation 


431,420 


- 


431,420 

Nonmajor Enterprise Funds 


336,049 


- 


336,049 

Total Enterprise Funds 

$ 

767,469 

$ 

1,104,203 

$ 

1,871,672 

Internal Service Funds 

$ 

1,314,498 

$ 

_ 

$ 

1,314,498 


29. OTHER EXPENSES 

The following table summarizes Other Expenses for the fiscal year ended June 30, 2015. 


(Dollars in Thousands) 


Grants and 

Distributions 

To Localities 

Expendable 

Equipment/ 

Improvements 

Other (1) 

Total 

Other 

Expenses 

Proprietary Funds: 









Major Enterprise Funds: 









Virginia College Savings Ran 

$ 

- 

$ 

351 

$ 

933 

$ 

1,284 

Nonmajor Enterprise Funds 


94 


2,500 


4,351 


6,945 

Total Enterprise Funds 

$ 

94 

$ 

2,851 

$ 

5,284 

$ 

8,229 

Internal Service Funds 

$ 

1,673 

$ 

1,531 

$ 

16,898 

$ 

20,102 

Pension and Other Employee Benefit Trust Funds (2) 

$ 

_ 

$_ 

_ 

$ _ 

3,913 

$ _ 

3,913 


Note (1): $7,729 (dollars in thousands) can be attributed to expenses related to closing cases and cyber insurance in the Risk Management 

internal service fund. $933 (dollars in thousands) can be attributed to the Virginia529 prePAID Program for the SOAR 
scholarship. 

Note (2): Fiduciary expenses of $3,913 (dollars in thousands) are not included in the Government-wide Statement of Activities. 


164 Commonwealth of Virginia 







30. OTHER NON-OPERATING REVENUE/EXPENSES 


The following table summarizes Other Non-Operating Revenue/Expenses for the fiscal year ended June 30, 2015. 

(Dollars in Thousands) _ 

Total 



Loss 

on Sale of 

Capital 

Assets 

Expenses 

for 

Securities 

Lending 

Transactions 

Interest 

Expense 

Federal 

Unemployment 

Tax Act 

Other (1) 

Other 

Non- 

Operating 

Revenue/ 

(Expenses) 

Proprietary Funds: 










Major Enterprise Funds: 










Virginia Lottery 

$ 

$ (95) 

$ 

$ 

- 

$ 

416 

$ 

321 

Virginia College Savings Ran 

- 

- 

(182) 


- 


- 


(182) 

Unemployment Compensation 

- 

- 

- 


(51) 


- 


(51) 

Nonmajor Enterprise Funds 

(184) 

(9) 

(12,081) 


- 


8,655 


(3,619) 

Total Enterprise Funds 

$ (184) 

$ (104) 

$ (12,263) 

$ 

(51) 

$ 

9,071 

$ 

(3,531) 

Internal Service Funds 

$ 900 

$ (15) 

$ (2,837) 

$ 

_ 

$ 

70 

$ 

(1,882) 


Note (1): Other Non-Operating Revenue/Expenses of the nonmajor enterprise funds are comprised of $9,063 (dollars in thousands) reported 
by the Department of Alcoholic Beverage Control and $11 (dollars in thousands) reported by the Department for the Blind and Vision 
Impaired and offset by $419 (dollars in thousands) of expenses reported by the Route 460 Funding Corporation of Virginia. 


31. SPECIAL ITEM 

Governmental Activities 

The Route 460 and Route 29 roadway projects became 
permanently impaired during fiscal year 2015 due to 
work stoppage (see Note 12). The two projects were 
disposed during fiscal year 2015, resulting in an 
impairment loss of $134.6 million. 

Business-type Activities 

The Virginia Department of Transportation (VDOT) (part 
of primary government) terminated the Comprehensive 
Agreement between the Route 460 Funding Corporation 
of Virginia (Corporation) (nonmajor enterprise) and the 
Route 460 Mobility Partners, LLC, in June 2015 for 
VDOT’s convenience. Accordingly, the Corporation’s 
continuing operations will cease during fiscal year 2016. 
As a result of the termination of the Comprehensive 
Agreement, the U.S. Route 460 Corridor Improvements 
Project became permanently impaired during fiscal year 
2015. The project was disposed during fiscal year 
2015, resulting in an impairment loss of $131.4 million 
(see Note 12). The impairment loss is partially offset by 
the recovery of funds in the amount of $45.7 million. 
Additionally, VDOT is responsible for a convenience 
termination payment to the Corporation in the amount of 
$120.1 million. As discussed in Note 41, the 
outstanding bonds were redeemed in September 2015. 


Commonwealth of Virginia 165 










32. TRANSFERS 


The following table summarizes Transfers In and Transfers Out for the fiscal year ended June 30, 2015 (dollars in thousands). 

_Transfers In (Reported In): 


Transfers Out (Reported In): 

General 

Commonwealth 

Transportation 


Federal 

Trust 

Literary 

Nonmajor 

Governmental 

Funds 

Primary Government 









General 

$ 

$ 

59,348 

$ 

15 

$ 

$ 

405,388 

Major Special Revenue Funds: 









Commonw ealth Transportation 

56,758 


- 


46 

- 


324,010 

Federal Trust 

2 


17,154 


- 

- 


8,380 

Nonmajor Governmental Funds 

82,267 


- 


231 

- 


12,907 

Major Enterprise Funds: 









Virginia Lottery 

533,760 


- 


- 

12,421 


- 

Virginia College Savings Ran 

337 


- 


- 

- 


- 

Unemployment Compensation 

- 


- 


2,042 

- 


- 

Nonmajor Enterprise Funds 

164,334 


- 


- 

24 


15,510 

Internal Service Funds 

6,933 


- 


- 

- 


4,257 

Total Primary Government 

$ 844,391 

_$_ 

76,502 


2,334 

$ 12,445 

$ 

770,452 


Transfers are used to (1) move revenues from the fund 
that the Code of Virginia or budget requires to collect 
them to the fund that the Code of Virginia or budget 
requires to expend them; (2) move receipts restricted for 
debt service from the funds holding the resources to the 
debt service fund as principal and interest payments 
become due; and (3) move unrestricted revenues 
collected in the General Fund to finance various 
programs accounted for in other funds in accordance 
with budgetary authorizations. 


During the fiscal year, the following significant transfers 
were made that do not occur on a routine basis or are 
inconsistent with the activities of the fund making the 
transfer. 

Various nongeneral funds transferred approximately 
$69.8 million to the General Fund as required by 
Chapter 665, 2015 Virginia Acts of Assembly. 


166 Commonwealth of Virginia 









Nonmajor 

Enterprise 

Funds 

Internal 

Service 

Funds 

Total 

Primary 

Government 

$ 

$ 2,014 

$ 

466,765 

_ 

388 


381,202 

57 

- 


25,593 

- 

2,891 


98,296 

_ 

_ 


546,181 

- 

- 


337 

- 

- 


2,042 

- 

- 


179,868 

- 

- 


11,190 

$ 57 

$ 5,293 


1,711,474 


33. ON-BEHALF PAYMENTS 

Higher education institutions (nonmajor component 
units) received various on-behalf payments from 
foundations primarily for salary supplements and 
stipends during fiscal year 2015. Since the foundations 
are included as part of the higher education entity, most 
on-behalf payments were considered intrafund and were 
eliminated from the financial statements. On-behalf 
payments not eliminated for fiscal year 2015 totaled 
$91,027 and were recorded as program revenue - 
charges for services with corresponding expenses. 


34. ENDOWMENTS 

Donor restricted endowments reside primarily within the 
higher education institutions. The net appreciation 
available for expenditure is $1.4 billion as of June 30, 
2015. Of this amount, $1.3 million is reported as 
unrestricted net position and the remainder is reported 
as restricted net position. The Code of Virginia 
authorizes acceptance of donations. The governing 
boards of these entities and the donor agreements 
determine whether net appreciation can be spent and 
the accepted spending rate. These policies are entity 
specific and vary with each institution. 


Commonwealth of Virginia 167 




35. CASH FLOWS - ADDITIONAL DETAILED INFORMATION 


The following table (dollars in thousands) summarizes specific cash flows for the fiscal year ended June 30, 2015. 

Virginia 

College 


Virginia Savings Unemployment 

Lottery _Plan_ Compensation 


Cash Flows Resulting from: 

Payments for Prizes, Claims, and Loss Control: 

Lottery Prizes 

$ (1,137,625) $ 

- $ 

- 

Claims and Loss Control 

- 

- 

(447,855) 

Total 

$ (1,137,625) $ 

- s 

(447,855) 

Other Operating Revenue: 

Receipts from Interest, Dividends, and Rents 

$ - $ 

(593) $ 

- 

Other Operating Revenue 

- 

- 

45 

Total 

$ - $ 

(593) $ 

45 

Other Operating Expense: 

Other Operating Expenses (1) 

$ - $ 

(134) $ 

- 

Total 

$ - $ 

(134) $ 

- 

Other Noncapital Financing Receipt Activities: 

Advances/Contributions from the Commonw ealth 

$ - $ 

- S 

- 

Receipts from Taxes 

- 

- 

- 

Other Noncapital Financing Receipt Activities 

499 

- 

25 

Total 

$ 499 $ 

- $ 

25 

Other Noncapital Financing Disbursement Activities: 

Repayments of Advances/Contributions from the Commonwealth 

$ - $ 

- $ 

- 

Other Noncapital Financing Disbursement Activities 

- 

- 

- 

Total 

$ - $ 

- s 

- 

Other Capital and Related Financing Disbursement Activities: 

Other Capital and Related Financing Disbursement Activities 

$ - $ 

- $ 

- 

Total 

$ - $ 

- $ 

- 


Note (1): $134,320 can be attributed to disbursements related to the Virginia529 prePAID Program for the SOAR scholarship. Also, $7,729 
(dollars in thousands) can be attributed to disbursements related to closing cases and cyber insurance in the Risk Management 
internal service fund. 


168 Commonwealth of Virginia 




36. TOBACCO SETTLEMENT AND SECURITIZATION 


Nonmajor Total 

Enterprise Enterprise 


Internal 

Service 


Funds Funds Funds 


$ 

(339,087) 

$ 

(1,137,625) 

(786,942) 

$ 

(1,294,554) 

J_ 

(339,087) 

$_ 

(1,924,567) 

$ 

(1,294,554) 

$ 

6,056 

$ 

(593) 

6,101 

$ 

- 

$ 

6,056 

$ 

5,508 

$ 

- 


$ 

$ 

(5,421) 

(5,421) 

$ 

$ 

(5,555) $ 

(5,555) $ 

(21,137) 

(21,137) 

$ 

37,065 

214,281 

210 

$ 

37,065 $ 

214,281 

734 

153 

$ 

251,556 

$ 

252,080 $ 

153 

$ 

(26,563) 

(130) 

$ 

(26,563) $ 

(130) 

(1,900) 

$ 

(26,693) 

$ 

(26,693) $ 

(1,900) 

$ 


$ 

- $ 

(632) 

$ 

- 

$ 

- $ 

(632) 


On November 23, 1998, 46 states’ Attorneys General 
and the major tobacco companies signed a proposed 
settlement that reimburses states for smoking-related 
medical expenses paid through Medicaid and other 
health care programs. At the time of the settlement, it 
was estimated that the Commonwealth could receive 
approximately $4.1 billion over the duration of the 
settlement. The settlement was approved in a Consent 
Decree in December 1998. On March 29, 1999, the 
General Assembly enacted a law approving the 
establishment of the Virginia Tobacco Indemnification 
and Community Revitalization Commission 
(Commission) (nonmajor component unit), in 
compliance with the Consent Decree, to help 
communities in Virginia hurt by the decline of tobacco. 

The Commission was established for the purposes of 
determining the appropriate recipients of monies in the 
Tobacco Indemnification and Community Revitalization 
Fund. The monies are to be used to provide payments 
to tobacco farmers as compensation for the tobacco 
equipment and barns and lost tobacco production 
opportunities associated with a decline in quota. The 
monies are also to be used to revitalize tobacco 
dependent communities. 

The General Assembly also created the Virginia 
Foundation for Healthy Youth (Foundation) (nonmajor 
component unit). The purpose of the Foundation is to 
determine the appropriate recipients of monies in the 
Virginia Tobacco Settlement Fund. The Foundation will 
also be responsible for distributing monies for the 
purposes provided in the legislation. Disbursements can 
be made to assist in financing efforts to restrict the use 
of tobacco products by minors, through educational and 
awareness programs describing the health effects of 
tobacco use on minors, and laws restricting the 
distribution of tobacco products to minors. 

Additionally, the General Assembly created two special 
non-reverting funds. The Tobacco Settlement monies 
were accounted for in these funds and in the General 
Fund. Of the Settlement monies, 50.0 percent was 
deposited into the Tobacco Indemnification and 
Community Revitalization Fund at the Commission and 
10.0 percent continues to be deposited into the Virginia 
Tobacco Settlement Fund at the Foundation. The 
remaining 40.0 percent continues to be reported in the 
General Fund. 

Pursuant to Purchase and Sale Agreements executed in 
2005 and 2007, the Commonwealth, acting as an agent 
on behalf of the Commission, sold the Commission’s 
future right, title and interest in the Tobacco Settlement 
Revenues (TSRs) to the Tobacco Settlement Financing 
Corporation (Corporation) (related organization). 


Commonwealth of Virginia 169 




Consideration paid by the Corporation to the 
Commission for TSRs consisted of a cash amount 
deposited into an endowment to fund the long-term 
spending plan approved by the Commission. Bonds 
issued by the Corporation to finance the purchase price 
are asset-backed instruments secured solely by the 
Corporation’s right to receive TSRs. At the time of 
issuance these revenues were expected to produce 
sufficient funds to repay the bond obligations issued by 
the Corporation. 

The Commission is a nonmajor component unit of the 
Commonwealth, and the Corporation is disclosed as a 
related organization. 


37. SERVICE CONCESSION ARRANGEMENTS 

GASB Statement No. 60, Accounting and Financial 
Reporting for Service Concession Arrangements, 
describes the criteria for when an arrangement is 
classified as a Service Concession Arrangement (SCA). 
The basic criteria are: the operator of the capital asset 
owned by the transferor has the right to provide services 
in exchange for significant consideration; the operator’s 
revenue must come from a third party; the transferor 
must retain some level of control over the asset; and the 
transferor must receive significant residual interest at 
the conclusion of the arrangement. 

Primary Government 

The Commonwealth of Virginia has four SCAs as of 
June 30, 2015: Pocahontas 895, the 495 Express 
Lanes, Elizabeth River - Midtown Tunnel, and the 95 
Express Lanes. They are all related to highway 
construction and operation and were established per the 
Public-Private Transportation Act of 1995, as amended 
(PPTA). PPTA project goals are to provide highway 
projects to the public in a timely and cost effective 
manner with private funding and support. 

Pocahontas 895 

On June 21,2006, the Pocahontas Parkway Association 
(Association - previously reported as a blended 
component unit of the Virginia Department of 
Transportation (VDOT), part of primary government) 
signed an agreement with Transurban (895) LLC 
(Transurban). Under the terms of the agreement, all 
assets and rights of the Association under the 
Comprehensive Agreement with VDOT were transferred 
to Transurban. In exchange for the existing toll road and 
other assets, Transurban transferred sufficient funds 
and securities to pay or defease all outstanding bonds 
of the Association and pay all other outstanding 
obligations owed to VDOT. Additionally, Transurban 
agreed to construct an enhancement to the original toll 
road, and this enhancement was completed and placed 
in service in 2011. 


During the 99-year agreement term, VDOT will have fee 
title or good and valid interest in the asset. VDOT 
retains the right of inspection of the asset and has 
outlined maximum toll charges and increases in the 
terms of the agreement. Capital assets of $337.2 
million and deferred inflow balances of $518.0 million 
are included in the government-wide financial 
statements. No contractual liabilities exist for this 
arrangement as of June 30. 

During fiscal year 2014, the Transurban Board approved 
the transfer of Pocahontas 895 to the lenders of the 
asset due to lower revenues than anticipated. On May 
15, 2014, DBi Services assumed control of Pocahontas 
895. 

495 Express Lanes 

On December 19, 2007, VDOT signed an 80-year 
public-private partnership agreement with Capital 
Beltway Express, LLC. The purpose of this agreement 
is to build new express lanes to provide users with a 
faster and more reliable travel option. The construction 
of the express lanes was completed in November 2012. 

During the 80-year agreement, VDOT maintains 
regulatory control and jurisdiction of the express lanes. 
VDOT will have fee title or good and valid interest in the 
express lanes. The lanes will remain open for the public 
as long as the applicable tolls are paid. Capital assets 
of $959.5 million and deferred inflows of $1.0 billion are 
included in the government-wide financial statements. 
Liabilities are contingent on specific events occurring 
pursuant to the agreement. 

Elizabeth River - Midtown Tunnel 

On December 5, 2011, VDOT signed a 58-year public 
private partnership agreement with Elizabeth River 
Crossings OPCO, LLC. The purposes of this agreement 
are to build and operate a new tunnel that will be 
adjacent to the existing Midtown Tunnel for crossing the 
Elizabeth River, provide improvements to the existing 
Midtown Tunnel and the Downtown Tunnel, and to 
provide various extensions and improvements of the 
MLK Freeway and 1-264. 

During the agreement, Elizabeth River Crossings 
OPCO, LLC will operate and maintain the road. The 
revenue source for the concessionaire will be toll 
collections, excluding the MLK Freeway, which will be 
used for maintenance, operating and return on 
investment for constructing the project. At the end of 
the 58-year term, control of and the rights to operate the 
facilities will revert back to VDOT. Since assets related 
to this project will not be operational until fiscal year 
2017, no capital assets, liabilities, or deferred inflows of 
resources have been included in the financial 
statements. 


17 0 Common wealth of Virginia 




95 Express Lanes 

On July 31, 2012, VDOT signed a 73-year public private 
partnership agreement with 95 Express Lanes, LLC. 
This project will create approximately 29 miles of 
Express Lanes on 1-95 in Northern Virginia. The project 
will also add capacity to the existing HOV Lanes. The 
construction of the express lanes was completed in 
December 2014. 

During the agreement, 95 Express Lanes LLC will 
operate and maintain the road. The revenue source for 
the concessionaire will be toll collections which will be 
used for maintenance, operating and return on 
investment for constructing the project. At the end of 
the 73-year term, control of and the rights to operate the 
facilities will revert back to VDOT. The lanes will remain 
open for the public as long as the applicable tolls are 
paid. Capital assets of $612.2 million and deferred 
inflows of $628.5 million are included in the government¬ 
wide financial statements. Liabilities are contingent on 
specific events occurring pursuant to the agreement. 

Component Units 

Aramark - Dining Services 

During the year ended June 30, 2015, the University of 
Virginia (nonmajor) entered into an agreement with 
Aramark Educational Services, LLC (Aramark) for 
Aramark to provide dining services to the University. In 
return for use of University facilities, Aramark is required 
to make certain payments to the University and the 
University is required to provide certain repair and 
maintenance services related to the facilities during the 
term of the agreement. As of June 30, 2015, the 
University has accrued a $19.9 million receivable, a 
$13.5 million liability and a $73.0 million deferred inflow 
of resources related to the service concession 
arrangement. 


38. INFORMATION TECHNOLOGY INFRASTRUCTURE 
PARTNERSHIP - NORTHROP GRUMMAN 

The Comprehensive Infrastructure Agreement (CIA) is a 
contract, executed on November 13, 2005, between the 
Commonwealth of Virginia (Commonwealth) acting 
through the Virginia Information Technologies Agency 
(VITA) and Northrop Grumman Systems Corporation 
(NG). The Commonwealth’s primary goal is to 
significantly improve the Commonwealth’s IT 
infrastructure and the manner in which such 
infrastructure is operated, supported, and maintained for 
the following service towers: Cross-Functional Services, 
Desktop Computing Services, Data Network Services, 
Voice and Video Telecom Services, Mainframe and 
Server Services, Help Desk Services, Messaging 
Services, Security Services, Internal Application 
Services, and Data Center facilities. 


On March 31, 2010, contract revisions to the CIA were 
completed between the Commonwealth and Northrop 
Grumman. As a result of the contract changes, the 
Commonwealth renewed the contract for an additional 
three years, the parties established the products and 
services covered in the contractual cap including the 
baseline quantities to be billed and the prices at which 
those quantities will be billed, a shortened formula for 
contract year ten cost of living adjustment, and 
increased resolution and disentanglement fees. These 
contract changes are intended to provide improved 
performance to the VITA customer agencies, provide 
greater accountability and operational efficiencies for 
the services provided, and resolve outstanding financial 
issues. Additional contract revisions to the CIA have 
been completed between the Commonwealth and 
Northrop Grumman in the years since 2010. The 
contract term expires June 30, 2019. 

Expenses associated with the CIA in fiscal year 2015 
are $292.9 million, including payments to Northrop 
Grumman of $245.6 million. The Commonwealth 
expects to spend an additional $1.1 billion over the next 
four fiscal years. 

The Commonwealth may terminate the CIA due to a 
variety of reasons including the Commonwealth’s 
convenience; a significant change of control in the 
equity interests in NG; NG’s failure to implement 
satisfactory improvements; or, NG’s failure to prevent 
service interruption of 15 days or more. In these 
instances, the Commonwealth will be required to pay 
exit and resolution fees as outlined in the CIA. 
Additional causes for termination that do not require the 
payment of exit or resolution fees are NG’s default on 
the CIA terms, the Commonwealth’s lack of funds, or 
NG’s incurrence of liabilities equal to or more than 75.0 
percent of the direct damages cap. NG may terminate 
the CIA only if the Commonwealth owes an aggregate 
amount in excess of $100.0 million that is more than 30 
days past due and not being disputed in good faith. The 
Commonwealth may be required to pay exit and 
resolution fees, as outlined in the CIA, if NG terminates 
the CIA. Fees resulting from the termination of the 
agreement are expected to be significant to the 
Commonwealth. However, exit fees are subject to the 
appropriation, allocation and availability of 
Commonwealth funds. Further, if the Commonwealth 
and NG terminate the business relationship at the 
conclusion of the CIA term, the Commonwealth could 
incur significant costs to obtain and transition the IT 
infrastructure necessary to continue the 

Commonwealth’s operations. 


Commonwealth of Virginia 171 




39. CONTINGENCIES 

A. Grants and Contracts 

The Commonwealth has received federal grants for 
specific purposes that are subject to review and 
audit by the grantor agencies. Claims against these 
resources are generally conditional upon 
compliance with the terms and conditions of grant 
agreements and applicable federal regulations, 
including the expenditure of resources for allowable 
purposes. Any disallowance resulting from a federal 
audit may become a liability of the Commonwealth. 

Institutions of higher education (component units) 
and other state agencies are required to comply 
with various federal regulations issued by the Office 
of Management and Budget, if such agencies are 
recipients of federal grants, contracts, or other 
sponsored agreements. Failure to comply with 
certain requirements of these regulations may 
result in questions concerning the allowability of 
related direct and indirect charges pursuant to such 
agreements. It is believed that the ultimate 
disallowance pertaining to these regulations, if any, 
will be immaterial to the overall financial condition 
of the Commonwealth. 

The U.S. Department of Health and Human 
Services (DHHS) Office of the Inspector General 
conducted a review and indicated that the 
Commonwealth’s Statewide Indirect Cost Allocation 
Plan rates have allowed over-recoveries and 
transfers in the internal service funds. The U.S. 
DHHS has received the 2016 cost allocation plan 
which is based on fiscal year 2014 data. The 
Commonwealth has computed a liability of $3.1 
million pertaining to internal service fund transfers 
and over-recoveries as of June 30, 2015. The 
Commonwealth has computed an additional $18.4 
million representing the federal share of various 
rebates received. Both amounts have been 
reflected in the accompanying financial statements. 
The Commonwealth is currently appealing a DHHS 
determination letter indicating that an additional 
amount may be owed. 

Virginia’s combined overpayment and 
underpayment SNAP error rate for fiscal year 2014 
was 4.7 percent. The national performance 
measure (national average payment error rate) for 
fiscal year 2014 was 3.7 percent. The SNAP error 
rate may have been inconsistently reported and 
there is a reasonable possibility that the 
Commonwealth may owe an additional amount not 
expected to exceed $2.2 million. 

Under the Food and Nutrition Act of 2008 (the Act), 
a 2-year liability system for excessive payment 
error rates is in place. Under this system, a liability 
amount shall be established when, for the second 
or subsequent consecutive fiscal year, FNCS 
(Food, Nutrition, and Consumer Services) 
determines that there is a 95.0 percent statistical 
probability that a State’s payment error rate 
exceeds 105.0 percent of the national performance 
measure for payment error rates. Virginia was 
notified that FY 2014 fell within the tolerance level 


and will not count as a first year for the Virginia 
Department of Social Services. 

The Virginia Tourism Authority (nonmajor 
component unit) had unclaimed awards totaling 
$1.9 million payable to awardees upon submission 
of proper claims for reimbursement for the 
Marketing Leverage Program. Additionally, the 
Authority had unclaimed awards totaling $115,104 
payable to awardees upon submission of proper 
claims for reimbursement for the Sesquicentennial 
Marketing Program. In addition, the program has 
$46,358 in funding that had not been awarded to 
specific grantees. 

B. Litigation 

The Commonwealth is named as a party in legal 
proceedings and investigations that occur in the 
normal course of governmental operations, some 
involving substantial amounts. It is not possible at 
the present time to estimate the ultimate outcome 
or liability, if any, of the Commonwealth in respect 
to the various proceedings; however, it is believed 
that any ultimate liability resulting from these suits 
or investigations will not have a material, adverse 
effect on the financial condition of the 
Commonwealth. 

C. Subject to Appropriation 

Both the primary government and the discretely 
presented component units enter into agreements 
and issue debt secured solely by future 
appropriations from the General Fund of the 
Commonwealth. The primary government has 
leases and other agreements of such debt of $2.7 
billion. The discretely presented component units 
have such debt of $3.6 billion. 

D. Bailment Inventory 

The Department of Alcoholic Beverage Control 
(ABC) houses and controls bailment inventory in 
the warehouse and is therefore responsible for the 
exercise of reasonable care to preserve the 
inventory until it is purchased by ABC or returned to 
the supplier. ABC uses the bailment system for 
payment of merchandise for resale. ABC initiates 
payments to the vendors based on shipments from 
the ABC warehouse to the retail stores, rather than 
receipt of invoice from the vendor. At June 30, 
2015, the bailment inventory was valued at $43.0 
million. 

E. Loan Guarantees 

The Assistive Technology Loan Fund Authority 
(nonmajor component unit) has an alternative 
financing program which provides guarantees of 
loans made and serviced by its banking partner. As 
of June 30, 2015, there was approximately $89,492 
of guaranteed loans held by the Authority’s banking 
partner. 

The Virginia Small Business Financing Authority 
(VSBFA) (nonmajor component unit) has a loan 
guaranty program which provides guarantees up to 


17 2 Common wealth of Virginia 




the lesser of $500,000, or 75.0 percent, of a bank 
loan for lines of credit and short-term working 
capital loans for small businesses authorized by 
Section 2.2-2285 of the Code of Virginia. The 
relationship of the Commonwealth to the issuer or 
issuers of the obligations are private banks that 
contact VSBFA to obtain guarantees if they deem it 
necessary to approve the loan. The VSBFA staff 
underwrites the request for guarantees, and the 
Board of Directors makes the credit decision to 
approve or decline the loan. The Board has given 
VSBFA staff delegated authority to approve 
requests up to, and including, $500,000. The 
Board reviews all loan packages and ratifies all 
decisions. The length of time for the guarantees is 
up to five years for lines of credit and seven years 
for term loans. Upon a default or event of default 
under the loan documents and payment by VSBFA 
under the Guaranty Agreement, the borrower and 
the guarantor(s), jointly and severally, acknowledge 
and agree that VSBFA may set off, collect and 
retain any payments or monies due or owing the 
borrower or any guarantor from the Commonwealth 
of Virginia, and/or any governmental authority or 
agency of the Commonwealth. VSBFA submits 
collections to the Office of the Attorney General, 
Division of Debt Collection for legal action and 
collection of debt. As of June 30, 2015, the loan 
guaranty program has guarantees outstanding of 
$7.4 million and cash pledged as collateral of $10.7 
million. 

GASB Statement No. 70, Accounting and Financial 
Reporting for Nonexchange Financial Guarantees , 
requires that certain information be disclosed 
regarding selected nonexchange financial 
guarantees. As of June 30, 2015, the VSBFA 
recognized a nonexchange financial guarantee 
liability of $147,892. This is a reduction of $1,986 
from the beginning balance of $149,878. There 
were no required payments made during fiscal year 
2015. Additionally, there have been no cumulative 
amounts paid on these outstanding loan 
guarantees nor are there any expected recoveries. 

F. Regional Wet Weather Management Plan 

Hampton Roads Sanitation District (HRSD) 
(nonmajor component unit) is party to a federal 
consent decree with the federal and state 
governments (the Consent Decree), which requires 
the HRSD to evaluate the wet weather capacity of 
the regional sewer system, including collection 
systems owned by 13 of the localities which the 
HRSD serves in the Hampton Roads area. Based 
upon that evaluation, the HRSD, in consultation 
with the localities, is required to develop a regional 
wet weather management plan (RWWMP) for 
submittal to the federal and state environmental 
agencies for their approval. 

The HRSD and the localities believe that 
addressing wet weather capacity issues from a 
regional perspective will result in the most 
affordable and cost-effective approach for rate 
payers throughout the region. Toward that end, the 
HRSD and the localities entered into a legally 
binding Memorandum of Agreement in March of 


2014 (the MOA). The MOA commits HRSD to (1) 
develop the RWWMP in consultation with the 
localities, (2) fund the approved plan through a 
regional rate imposed on all regional ratepayers, (3) 
design and construct the necessary improvements, 
and (4) assume responsibility for wet weather 
capacity throughout the region in each area once 
the RWWMP is implemented. In exchange, the 
localities have agreed to (1) cooperate with the 
HRSD, (2) facilitate the construction of and accept 
ownership of any improvements which the HRSD 
may need to construct in the localities’ systems, 
and (3) maintain the integrity of their systems to 
industry standards. The Consent Decree and MOA 
also contemplate that the localities’ obligation to 
maintain the integrity of their sewer systems to 
industry standards will be embodied in a State 
administrative order by the end of 2014. While the 
HRSD is preparing the RWWMP, the Consent 
Decree also requires the HRSD to implement 
approximately $200.0 million in priority capital 
system upgrade projects over a 9-year period, 
which are included in the capital improvement and 
expansion program. The HRSD is on schedule to 
complete these projects. The HRSD has a major 
capital improvement and expansion program 
funded through the issuance of debt and its own 
resources. As of June 30, 2015, the HRSD has 
outstanding commitments for contracts in progress 
of approximately $166.6 million. 


40. PENDING GOVERNMENTAL ACCOUNTING 
STANDARDS BOARD STATEMENT 

The GASB has issued Statement No. 74, Financial 
Reporting for Postemployment Benefit Plans Other 
Than Pension Plans, and Statement No. 75, Accounting 
and Financial Reporting for Postemployment Benefits 
Other Than Pensions. Both statements will significantly 
impact the Commonwealth’s reporting disclosures and 
accrued other postemployment benefit liability amounts. 
The Virginia Retirement System and the Department of 
Human Resource Management will implement GASB 
Statement No. 74 in fiscal year 2017. The 
Commonwealth will implement GASB Statement No. 75 
in fiscal year 2018. 

41. SUBSEQUENT EVENTS 
Primary Government 
Debt 

On September 17, 2015, the Route 460 Funding 
Corporation of Virginia (Corporation) (nonmajor 
enterprise) closed on the Extraordinary Mandatory 
Redemption of its Series 2012 Toll Road Senior Lien 
Revenue Bonds. Funds from the Corporation, together 
with certain amounts contributed from other entities, 
were used to provide the cash that was deposited in an 
irrevocable redemption account to redeem the Series 
2012A and B Bonds. U.S. Bank National Association, 
the Trustee, paid the redemption cost of the Series 
2012A Bonds and redeemed the Series 2012A bonds, 
at the Amortized Redemption Price on September 17, 
2015. The Trustee paid the redemption cost of the 


Commonwealth of Virginia 173 




Series 2012B Bonds and redeemed the Series 2012B 
Bonds, at the Accreted Value on September 17, 2015. 
As part of that transaction, the Corporation transferred 
from its operating account $164.8 million to the Trustee. 
Those funds in conjunction with the September 17, 
2015, balance of the Corporation’s restricted cash, cash 
equivalents, and investments already held with the 
Trustee totaling $155.5 million, were placed into an 
irrevocable redemption account held with the Trustee to 
provide for all future debt service payments on the 
bonds. 

Other 

Subsequent to June 30, 2015, Property Management 
(internal service fund) signed a new operating lease 
beginning July 1, 2015 with future payments of $23.1 
million. 

On September 16, 2015, the Virginia Department of 
Transportation (VDOT) terminated for default a May 
2013 contract entered into with Serco Inc., for $382.7 
million over six years. This contract was for the 
operation of five transportation operations centers in 
addition to managing the Highway Safety Service Patrol. 
VDOT is currently evaluating its rights and remedies as 
a result of the contract default. The exit period for this 
contract will be by May 1, 2016. The value of this 
contract at June 30, 2015, was $308.4 million. 

Component Units 

Debt 

Subsequent to June 30, 2015, the Virginia Resources 
Authority (VRA) (major) issued bonds in the amount of 
$70.1 million, dated July 29, 2015. The interest rates 
range from 0.2 percent to 5.0 percent with a final due 
date of November 1,2035. 

On July 30, 2015, the Virginia Public School Authority 
(VPSA) (major) issued $98.5 million of Special 
Obligation School Financing Bonds, Prince William 
County Series 2015. The Bonds will be used by the 
County to finance a portion of the costs of certain capital 
improvements to the County school system. 

On July 16, 2015, George Mason University (nonmajor) 
signed a $54.8 million construction phase services 
contract with the Whiting-Turner Contracting Company 
for the construction of the Academic Vll/Research III 
building (the Health and Human Services Building) on 
the Fairfax Campus. 

On August 5, 2015, the Virginia Housing Development 
Authority (major) issued $22.6 million of Rental Housing 
Bonds. The interest rates range from 0.7 percent to 4.0 
percent with a final due date of August 1,2045. 

On August 13, 2015, the Virginia College Building 
Authority (VCBA) (major) issued its $290.1 million 
Educational Facilities Revenue Bonds (21st Century 
College and Equipment Programs), Series 2015D. The 
Bonds will provide funding for authorized VCBA capital 
and equipment projects at public institutions of higher 
education around the Commonwealth. 


On October 20, 2015, the Virginia Polytechnic Institute 
and State University (VPI&SU) (nonmajor) issued Series 
2015 Revenue Bonds totaling $62.2 million. The bonds 
consisted of the following: $51.4 million Series 2015A 
Dormitory and Dining Hall Systems and General 
Revenue Pledge Bonds, $510,000 Series 2015B 
Athletic Facilities System and General Revenue Pledge 
Bonds, $3.3 million Series 2015C University Services 
System and General Revenue Pledge Bonds, $4.4 
million Series 2015D Utility Systems and General 
Revenue Pledge Bonds, $2.6 million Series 2015E 
General Revenue Pledge Refunding Bonds. The bond 
proceeds will be used for the following: finance certain 
capital projects; repay temporary financing provided 
through the Commercial Paper Program; and the 
outstanding principal amount of the University’s General 
Revenue Pledge Refunding Bonds, Series 2004A 
maturing, or subject to mandatory sinking fund 
redemption, in the years 2017 to 2020; and finance 
costs associated with the issuance of the Bonds. 

On October 30, 2015, the Rector and Visitors of the 
University of Virginia (nonmajor) on behalf of the 
Medical Center and Novant Health, Inc. (Novant) 
entered into an agreement to form a joint operating 
company effective January, 2016 to operate Culpeper 
Regional Hospital, Novant Health Haymarket Medical 
Center, Novant Health Prince William Medical Center, 
Novant Health Cancer Center at Lake Manassas and 
other Novant assets as one entity. The joint operating 
company has two members, the Medical Center and 
Novant. The equity in the joint operating company will 
be owned 60.0 percent and 40.0 percent by Novant and 
the Medical Center, respectively. 

On November 19, 2015, VPSA issued $49.4 million of 
School Financing Bonds (1997 Resolution) Series 
2015C to purchase certain general obligation local 
school bonds to finance capital projects for public 
schools. 

On December 3, 2015, VCBA (nonmajor) issued $53.6 
million in Educational Facilities Revenue Bonds, Series 
2015A and $153.9 million in Education Facilities 
Revenue Refunding Bonds, Series 2015B under the 
Public Higher Education Financing Program (the “Pool 
Program”). The VCBA used the proceeds of the Series 
2015A Bonds to acquire Institutional Notes from 
participating public institutions of higher education. 
Each participating Institution will use the proceeds of its 
Institutional Note to finance capital projects approved by 
the General Assembly. The VCBA will use the 
proceeds of the Series 2015B Bonds to refund certain 
prior Authority Bonds issued under the Pool Program. 

Other 

Subsequent to June 30, 2015, the Virginia 

Commonwealth University announced the formation of 
the VCU Investment Management Company (VCIMCO), 
an independent 501(c)(3) foundation to advise the 
University and its affiliated foundations on the 
management of its assets. Investing activities by 
VCIMCO are to begin early 2016. Its primary objective 
in managing the assets is to maximize long-term real 
return commensurate with the risk tolerance of the VCU 
entities. 


17 4 Common wealth of Virginia 




Subsequent to June 30, 2015, the City Council of 
Richmond, Virginia (the City) approved a proposal that 
will allow the Virginia Port Authority (VPA) (nonmajor) to 
extend its lease of the Port of Richmond for 40 
additional years. The existing lease was scheduled to 
expire in October 2016. The lease, when 
consummated, will provide the VPA with, among other 
things, the ability to appoint a terminal operator, and 
have right of first refusal with respect to any sale or 
transfer by the City of all or any portion of the leased 
premises. The ultimate lease payments are expected to 
be on an annual basis, with the ultimate amount 
contingent upon certain economic development results 
to be determined between the VPA and the City. 

On July 1, 2015, an Agreement for Shared Services 
entered between the VPA, the Virginia International 
Terminals, LLC (VIT) (a blended component unit of the 
Virginia Port Authority (VPA) - nonmajor) and Hampton 
Roads Chassis Pool II (HRCP II) in August 2014 


included Information Technology support. Costs are 
billed to each entity based on a budgeted allocation with 
a true-up to actual cost on a quarterly but no less than 
annual frequency. On July 1, 2015, all Information 
Technology personnel were transferred from the VIT to 
the Authority, consistent with the goal of streamlining 
the administration of The Port of Virginia and reducing 
costs. 

On October 30, 2015, the Hampton Roads Sanitation 
District Commission (nonmajor) closed on a $90.0 
million credit agreement (the Agreement) that provides 
funding for the capital improvement program. The 
Agreement will be available through June 30, 2016, with 
the option for an extension upon mutual agreement. 
Interest is based on 70.0 percent of the 1-month London 
Interbank Offered Rate (LIBOR) rate plus 0.4 percent 
per annum. 


Commonwealth of Virginia 175 





17 6 Common wealth of Virginia 







Commonwealth of Virginia 177 






Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - 
General and Major Special Revenue Funds 

Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 


General Fund 


Revenues: 

Original 

Budget 

Final 

Budget 


Actual 


Final/Actual 

Variance 

Positive 

(Negative) 







Taxes: 

Individual and Fiduciary Income 

$ 12,349,900 $ 

11,816,300 

$ 

12,328,675 

$ 

512,375 

Sales and Use 

3,561,970 

3,568,100 


3,587,849 


19,749 

Corporation Income 

816,600 

840,900 


831,907 


(8,993) 

Motor Fuel 

- 

- 


- 



Motor Vehicle Sales and Use 

- 

- 


- 


- 

Communications Sales and Use 

440,000 

425,000 


417,209 


(7,791) 

Deeds, Contracts, Wills, and Suits 

381,056 

328,300 


354,461 


26,161 

Premiums of Insurance Companies 

290,900 

320,500 


300,641 


(19,859) 

Alcoholic Beverage Sales 

198,800 

204,400 


207,802 


3,402 

Tobacco Products 

179,100 

178,820 


178,996 


176 

Estate 

- 

- 


98 


98 

Public Service Corporations 

97,700 

96,800 


98,537 


1,737 

Other Taxes 

20,205 

21,847 


30,251 


8,404 

Rights and Privileges 

89,626 

87,192 


78,654 


(8,538) 

Sales of Property and Commodities 

1,337 

3,445 


28,930 


25,485 

Assessments and Receipts for Support of Special Services 

850 

900 


1,582 


682 

Institutional Revenue 

42,711 

41,796 


38,240 


(3,556) 

Interest, Dividends, and Rents 

60,677 

62,629 


54,626 


(8,003) 

Fines, Forfeitures, Court Fees, Penalties, and Escheats 

213,345 

205,323 


216,698 


11,375 

Federal Grants and Contracts 

6,418 

6,414 


6,416 


2 

Receipts from Cities, Counties, and Towns 

9,333 

10,033 


16,533 


6,500 

Private Donations, Gifts and Contracts 

486 

475 


775 


300 

Tobacco Master Settlement 

53,209 

51,086 


48,207 


(2,879) 

Other 

264,956 

184,546 


158,807 


(25,739) 

Total Revenues 

19,079,179 

18,454,806 


18,985,894 


531,088 


Expenditures: 

Current: 

General Government 

2,895,523 

2,334,088 


2,273,965 


60,123 

Education 

8,000,322 

7,977,968 


7,928,734 


49,234 

Transportation 

204 

2,367 


836 


1,531 

Resources and Economic Development 

408,423 

465,224 


413,053 


52,171 

Individual and Family Services 

5,923,217 

5,827,264 


5,765,208 


62,056 

Administration of Justice 

2,556,220 

2,608,951 


2,586,618 


22,333 

Capital Outlay 

24,130 

31,380 


6,510 


24,870 

Total Expenditures 

19,808,039 

19,247,242 


18,974,924 


272,318 

Revenues Over (Under) Expenditures 

(728,860) 

(792,436) 


10,970 


803,406 


Other Financing Sources (Uses): 

Transfers: 

Transfers In 

807,406 

864,788 


866,913 


2,125 

Transfers Out 

(440,696) 

(431,678) 


(468,029) 


(36,351) 

Bonds Issued 

- 

- 


- 


- 

Premium on Debt Issuance 

- 

- 


- 


- 

Total Other Financing Sources (Uses) 

366,710 

433,110 


398,884 


(34,226) 

Revenues and Other Sources Over (Under) 

Expenditures and Other Uses 

(362,150) 

(359,326) 


409,854 


769,180 

Fund Balance, July 1 

1,349,301 

1,349,301 


1,349,301 


- 

Fund Balance, June 30 

$ 987,151 $ 

989,975 

$ 

1,759,155 

$ 

769,180 


See notes on page 181 in this section. 


17 8 Common wealth of Virginia 

















































































Special Revenue Funds 


Commonwealth Transportation Fund 





Final/Actual 




Variance 

Original 

Final 


Positive 

Budget 

Budget 

Actual 

(Negative) 


$ 

- 

$ 

- 

$ 

- 

$ 

- 


1,374,262 


1,236,725 


1,347,089 


110,364 


- 


- 


- 


- 


810,844 


907,243 


829,956 


(77,287) 


875,212 


814,200 


846,193 


31,993 


- 


- 


- 


- 


83,200 


77,100 


85,945 


8,845 


150,400 


150,397 


150,397 


- 


- 


- 


- 


- 


- 


- 


- 


- 


- 


- 


- 


- 


- 


- 


- 


- 


67,390 


64,630 


67,433 


2,803 


633,863 


539,050 


556,740 


17,690 


- 


556 


20,324 


19,768 


16,825 


19,866 


19,644 


(222) 


- 


- 


- 


- 


12,566 


12,355 


22,041 


9,686 


10,969 


9,962 


11,891 


1,929 


913,305 


1,059,345 


1,330,384 


271,039 


179,210 


205,804 


138,919 


(66,885) 


25 


25 


9,373 


9,348 


- 


- 


- 


- 


26,361 


22,411 


26,038 


3,627 


5,154,432 


5,119,669 


5,462,367 


342,698 



104,713 

84,598 

74,056 

10,542 

2,417 

1,099 

1,090 

9 

5,120,816 

5,986,034 

5,289,482 

696,552 

15,944 

14,617 

12,355 

2,262 

- 

- 

- 

- 

9,767 

9,767 

9,766 

1 

37,023 

75,487 

14,300 

61,187 

5,290,680 

6,171,602 

5,401,049 

770,553 

(136,248) 

(1,051,933) 

61,318 

1,113,251 



33,096 33,096 77,765 44,669 

(420,836) (395,874) (381,202) 14,672 

274,980 274,980 274,980 



$_ 2,011,937 $_ 1,121,214 $_ 2,293,806 $_ 1,172,592 


Continued on next page 


Commonwealth of Virginia 179 
















































































Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - 
General and Major Special Revenue Funds (Continued from previous page) 


Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 

Special Revenue Funds 
Federal Trust 

Final/Actual 

Variance 

Original Final Positive 


Revenues: 


Budget 

Budget 

Actual 

(Negative) 






Taxes: 

Individual and Fiduciary Income 

$ 

$ 

$ 


$ 

Sales and Use 


- 

- 

- 


Corporation Income 


- 

- 

- 

- 

Motor Fuel 


- 

- 

- 


Motor Vehicle Sales and Use 


- 

- 

- 

- 

Communications Sales and Use 


- 

- 

- 


Deeds, Contracts, Wills, and Suits 


- 

- 

- 

- 

Premiums of Insurance Companies 


- 

- 

- 


Alcoholic Beverage Sales 


- 

- 

- 

- 

Tobacco Products 


- 

- 

- 


Estate 


- 

- 

- 

- 

Public Service Corporations 


- 

- 

- 


Other Taxes 


- 

- 

- 

- 

Rights and Privileges 


- 

- 

- 


Sales of Property and Commodities 


14 

501 

- 

(501) 

Assessments and Receipts for Support of Special Services 


- 

- 

- 


Institutional Revenue 


- 

- 

- 

- 

Interest, Dividends, and Rents 


376 

527 

716 

189 

Fines, Forfeitures, Court Fees, Penalties, and Escheats 


3,663 

3,397 

7,273 

3,876 

Federal Grants and Contracts 


7,510,001 

7,436,222 

8,374,296 

938,074 

Receipts from Cities, Counties, and Towns 


- 

- 

- 

- 

Private Donations, Gifts and Contracts 


- 

- 

- 


Tobacco Master Settlement 


- 

- 

- 

- 

Other 


132,448 

167,888 

143,031 

(24,857) 

Total Revenues 


7,646,502 

7,608,535 

8,525,316 

916,781 


Expenditures: 

Current: 

General Government 


150,730 

165,900 

149,349 

16,551 

Education 


932,434 

935,253 

943,378 

(8,125) 

Transportation 


35,091 

31,240 

14,011 

17,229 

Resources and Economic Development 


168,052 

188,750 

162,459 

26,291 

Individual and Family Services 


6,277,050 

6,183,330 

7,177,937 

(994,607) 

Administration of Justice 


55,453 

73,701 

42,301 

31,400 

Capital Outlay 


18,498 

21,843 

12,318 

9,525 

Total Expenditures 


7,637,308 

7,600,017 

8,501,753 

(901,736) 

Revenues Over (Under) Expenditures 


9,194 

8,518 

23,563 

15,045 


Other Financing Sources (Uses): 

Transfers: 

Transfers In 


- 

- 

2,030 

2,030 

Transfers Out 


(9,194) 

(8,518) 

(25,593) 

(17,075) 

Bonds Issued 


- 

- 

- 

- 

Premium on Debt Issuance 


- 

- 

- 

- 

Total Other Financing Sources (Uses) 


(9,194) 

(8,518) 

(23,563) 

(15,045) 

Revenues and Other Sources Over (Under) 

Expenditures and Other Uses 


- 

- 

- 

- 

Fund Balance, July 1 


- 

- 

- 

- 

Fund Balance, June 30 

$ 

$ 

$ 


$ 


See notes on page 181 in this section. 


180 Commonwealth of Virginia 



















































































Notes for Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - 
General and Major Special Revenue Funds 


1. Basis of Budgeting vs. Modified Accrual Basis Fund Balance (1) 

Since the presentation of financial data on the basis of budgeting differs from that presented under accounting principles generally accepted in 
the United States of America, a schedule reconciling the fund balance on a budgetary basis at June 30, 2015, to the fund balance on a 
modified accrual basis follows. 


(Dollars in Thousands) 

Fund Balance Comparison 

Budgetary Basis to GAAP Basis 





General 

Fund 

Commonwealth 

Transportation 

Fund 

Federal 

Trust Fund 

Fund Balance, Basis of Budgeting 

Adjustments from Budget to Modified Accrual: 
Accrued Revenues: 

$ 

1,759,155 

$ 2,293,806 

$ 

Taxes 


618,727 

142,083 

- 

Tax Refunds 


(452,947) 

- 

- 

Other Revenue/Other Sources 


56,850 

68,110 

572,688 

Unearned Taxes (2) 


(64,497) 

- 

- 

Medicaid Payable 


(327,236) 

- 

(336,886) 

Accrued Expenditures/Other Uses 


(741,696) 

(232,892) 

(120,366) 

Fund Balance, Modified Accrual Basis 

$ 

848,356 

$ 2,271,107 

$ 115,436 


1. As discussed in Note 1 .E., the Literary Fund has no approved budget. 

2. See also Note I.R. 


2. Appropriations 

The amounts presented in the Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - General and 
Major Special Revenue Funds are principally on a cash basis and represent the original budget adopted by the General Assembly and all 
supplemental appropriations and transfers. The following schedule reconciles original appropriations to the final adjusted expenditure 
appropriations for the General Fund and Major Special Revenue Funds, at June 30, 2015, except the Literary Fund which has no approved 
budget. 


(Dollars in Thousands) 

General 

Fund (10) 

Commonwealth 

Transportation 

Fund 

Federal 

Trust 

Fund (11) 

Appropriations (1) 

$ 19,808,039 

$ 5,290,680 

$ 7,637,308 

Supplemental Appropriations: 

Reappropriations (2) 

234,266 

46,310 

20,640 

Subsequent Executive (3) 

124,396 

846,680 

295,133 

Subsequent Legislative (4) 

(617,008) 

(413) 

(324,950) 

Capital Outlay and Operating Reversions (5) 

(5,480) 

- 

(1,551) 

Deficit (6) 

273 

- 

- 

Transfers (7) 

(245,446) 

(101) 

(8,408) 

Capital Outlay Adjustment (8) 

(51,798) 

(7,845) 

(18,155) 

Debt Service Adjustment (9) 

- 

(3,709) 

- 

Appropriations, as adjusted 

$ 19,247,242 

$ 6,171,602 

$ 7,600,017 


1. Represents the budget appropriated through Chapter 2, 2014 Acts of Assembly, as amended by Chapter 665, 2015 Acts of Assembly. 

2. Actions taken to reappropriate any prior year unexpended balances per authority of the language in the Appropriation Act. 

3. Actions taken by the Governor to carry forward any prior year unexpended balances, sum sufficient authority, and year 2 to year 1 
reductions (General Fund) and actions taken to appropriate any additional revenues collected so that they can be legally spent (Special 
Revenue Funds). 

4. Actions taken by the Governor and the General Assembly to adjust the budget. 

5. Represents reversions of unexpended capital outlay and operating balances. 

6. Represents additional appropriations authorized subsequent to the 2015 General Assembly Session for legal expenses. 

7. Represents transfers required by the Appropriation Act. Transfers out are reduced by approximately $1.5 billion (General Fund) and $5.1 
million (Commonwealth Transportation Fund) for transfers to component units and fiduciary funds that have been reclassified as 
expenditures in accordance with GASB Statement No. 34. 

8. Capital outlay appropriations cover the projects' lives and usually extend beyond the current fiscal year. These amounts have been 
adjusted to report the amount authorized for expenditure during the current fiscal year. 

9. The Commonwealth Transportation Fund appropriations have been adjusted for debt service. 

10. Budgetary reductions totaling $18.5 million are excluded since they were not available for disbursement during the current fiscal year. 

11. Appropriations do not include food stamp issuances of $1.2 billion since this is a noncash item; however, this amount is included in actual 
expenditures. 


Commonwealth of Virginia 181 






Schedule of Changes in Employers' Net Pension Liability (1) (2) 

Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 


VRS State VRS Teacher VRS Political Subdivisions 


Change in the Net Pension Liability 

2016 

2015 

2016 

2015 

2016 

2015 

Total pension liability: 

Service cost 

$ 375,149 $ 

369,120 

$ 828,901 

$ 831,501 

$ 530,945 $ 

524,758 

Interest 

1,482,951 

1,436,064 

2,834,138 

2,722,788 

1,309,484 

1,243,386 

Benefit changes 

- 

- 

- 

- 

1,135 

- 

Difference betw een actual and 
expected experience 

59,923 

_ 

(212,089) 

_ 

(185,419) 

_ 

Assumption changes 

- 

- 

- 

- 

- 

- 

Benefit payments 

(1,136,102) 

(1,081,866) 

(1,980,353) 

(1,874,636) 

(819,201) 

(754,706) 

Refunds of contributions 

(27,724) 

(25,036) 

(36,058) 

(36,103) 

(36,898) 

(36,876) 

Net change in total pension liability 

754,197 

698,282 

1,434,539 

1,643,550 

800,046 

976,562 

Total pension liability - beginning 

21,766,933 

21,068,651 

41,495,883 

39,852,333 

19,135,008 

18,158,446 

Total pension liability - ending (a) 

$ 22,521,130 $ 

21,766,933 

$ 42,930,422 

$ 41,495,883 

$ 19,935,054 $ 

19,135,008 


Plan fiduciary net position: 

Contributions - employer 

Contributions - member 

Net investment income 

Benefit payments 

Refunds of contributions 

Administrative expense 

Other 

$ 

480,657 

195,582 

728,083 

(1,136,102) 

(27,724) 

(10,302) 

(154) 

$ 

343,259 

198,035 

2,243,999 

(1,081,866) 

(25,036) 

(12,341) 

123 

$ 

1,267,250 

373,525 

1,327,047 

(1,980,353) 

(36,058) 

(18,238) 

(284) 

$ 

853,634 
371,241 
4,042,441 
(1,874,636) 
(36,103) 
(22,036) 
217 

$ 

533,877 

227,060 

761,164 

(819,201) 

(36,898) 

(10,358) 

(162) 

$ 

539,366 

225,555 

2,272,284 

(754,706) 

(36,876) 

(12,153) 

120 

Net change in plan fiduciary net position 

Plan fiduciary net position - beginning 


230,040 

16,168,535 


1,666,173 

14,502,362 


932,889 

29,411,183 


3,334,758 

26,076,425 


655,482 

16,627,539 


2,233,590 

14,393,949 

Plan fiduciary net position - ending (b) 

$ 

16,398,575 

$ 

16,168,535 

$ 

30,344,072 

$ 

29,411,183 

$ 

17,283,021 

$ 

16,627,539 

Net pension liability - ending (a-b) 

$ 

6,122,555 

$ 

5,598,398 

$ 

12,586,350 

$ 

12,084,700 

$ 

2,652,033 

$ 

2,507,469 

Ran fiduciary net position as a percentage 
of the total pension liability (b/a) 


72.8% 


74.3% 


70.7% 


70.9% 


86.7% 


86.9% 

Covered employee payroll (c) (3) 

$ 

3,878,632 

$ 

3,861,712 

$ 

7,434,932 

$ 

7,313,025 

$ 

4,513,335 

$ 

4,434,764 

Net pension liability as a percentage 
of covered employee payroll ((a-b)/c) 


157.9% 


145.0% 


169.3% 


165.2% 


58.8% 


56.5% 


(1) The Commonwealth implemented GASB Statement No. 68, Accounting and Financial Reporting for Pensions - an amendment of GASB 
Statement No. 27, and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date - an 
amendment of GASB Statement No. 68, effective for the fiscal year ended June 30, 2015, therefore, ten years of data is unavailable. 

(2) The Commonwealth's fiscal year 2015 net pension measurement date is June 30, 2014, as reported in Note 15. 

(3) Includes only pensionable payroll costs. 

See notes on page 186 in this section. 


182 Commonwealth of Virginia 














SPORS 


VaLORS 


JRS 


2016 2015 2016 2015 2016 2015 


$ 

18,847 

70,350 

$ 

18,341 

67,977 

$ 

47,531 

124,579 


(2,890) 


- 


(4,849) 


(53,338) 

(375) 


(50,467) 

(685) 


(84,990) 

(4,797) 


32,594 

1,031,856 


35,166 

996,690 


77,474 

1,824,577 

$ 

1,064,450 

$ 

1,031,856 

$ 

1,902,051 

$ 

28,427 

5,680 

32,466 

(53,338) 

(375) 

(471) 

(27) 

$ 

42,683 

5,646 

98,682 

(50,467) 

(685) 

(431) 

$ 

62,084 

17,081 

52,312 

(84,990) 

(4,797) 

(743) 

(44) 


12,362 

720,990 


95,428 

625,562 


40,903 

1,150,450 

$ 

733,352 

$ 

720,990 

$ 

1,191,353 

$ 

331,098 

$ 

310,866 

$ 

710,698 


68.9% 


69.9% 


62.6% 

$ 

110,059 

$ 

112,010 

$ 

338,562 


300.8% 


277.5% 


209.9% 


$ 

46,504 

119,040 

$ 

23,254 

41,759 

$ 

24,024 

40,014 


- 


(9,107) 


- 


(78,412) 

(4,665) 


(40,205) 


(37,984) 


82,467 

1,742,110 


15,701 

616,680 


26,054 

590,626 

$ 

1,824,577 

$ 

632,381 

$ 

616,680 

$ 

67,483 

17,908 

156,786 

(78,412) 

(4,665) 

(681) 

$ 

31,503 

3,015 

20,051 

(40,205) 

(283) 

(17) 

$ 

27,727 

3,051 

60,833 

(37,984) 

(268) 


158,419 

992,031 


14,064 

442,194 


53,359 

388,835 

$ 

1,150,450 

$ 

456,258 

$ 

442,194 

$ 

674,127 

$ 

176,123 

$ 

174,486 


63.1% 


72.1% 


71.7% 

$ 

352,492 

$ 

61,092 

$ 

61,020 


191.2% 


288.3% 


285.9% 


Commonwealth of Virginia 183 














Schedule of Employer Contributions - 

Pension Plans (1) 





(Dollars in Thousands) 


Contributions 




Contributions 



in Relation to 




as a Percentage of 


Actuarially 

the Actuarially 

Contributions 


Covered 

Covered 

Year Ended 

Determined 

Determined 

Deficiency 


Employee 

Employee 

June 30 

Contribution 

Contribution 

(Excess) 


Payroll (2) 

Payroll 



VIRGINIA RETIREMENT SYSTEM (VRS) - STATE 




2015 

$ 612,824 

$ 478,235 $ 

134,589 

$ 

3,878,632 

12.33% 

2014 

504,726 

338,286 

166,440 


3,861,712 

8.76% 

2013 

485,577 

325,452 

160,125 


3,715,205 

8.76% 

2012 

309,930 

117,696 

192,234 


3,663,475 

3.21% 

2011 

294,363 

74,113 

220,250 


3,479,484 

2.13% 

2010 

285,209 

176,751 

108,458 


3,556,222 

4.97% 

2009 

290,653 

225,782 

64,871 


3,624,109 

6.23% 

2008 

260,965 

218,954 

42,011 


3,560,228 

6.15% 

2007 

246,458 

192,997 

53,461 


3,362,317 

5.74% 

2006 

124,556 

125,197 

(641) 


3,201,969 

3.91% 



VIRGINIA RETIREMENT SYSTEM (VRS) - TEACHER 



2015 

$ 1,353,158 

$ 1,078,065 $ 

275,093 

$ 

7,434,932 

14.50% 

2014 

1,226,394 

852,699 

373,695 


7,313,025 

11.66% 

2013 

1,203,856 

837,028 

366,828 


7,178,629 

11.66% 

2012 

903,655 

443,078 

460,577 


6,999,653 

6.33% 

2011 

891,237 

271,306 

619,931 


6,903,465 

3.93% 

2010 

839,550 

450,218 

389,332 


7,090,791 

6.35% 

2009 

845,999 

629,497 

216,502 


7,145,260 

8.81% 

2008 

766,559 

706,222 

60,337 


6,856,523 

10.30% 

2007 

733,633 

603,705 

129,928 


6,562,008 

9.20% 

2006 

499,861 

408,528 

91,333 


6,171,124 

6.62% 


VIRGINIA RETIREM ENT SYSTEM (VRS) - POLITICAL SUBDIVISIONS 


2015 

$ 540,859 

$ 535,919 $ 

4,940 

$ 

4,513,335 

11.87% 

2014 

551,822 

539,131 

12,691 


4,434,764 

12.16% 

2013 

537,657 

525,385 

12,272 


4,321,565 

12.16% 

2012 

400,879 

400,879 

- 


4,142,150 

9.68% 

2011 

391,531 

391,531 

- 


4,078,580 

9.60% 

2010 

363,982 

363,982 

- 


4,125,087 

8.82% 

2009 

364,366 

364,366 

- 


4,144,638 

8.79% 

2008 

351,469 

351,469 

- 


3,960,566 

8.87% 

2007 

319,516 

319,516 

- 


3,699,629 

8.64% 

2006 

239,827 

239,827 

- 


3,441,325 

6.97% 

(1) Contributions made by employers were not in all cases in accordance with the actuarially determined Annual Required Contribution (ARC), 
but they did meet statutory requirements. 

(2) Includes only pensionable payroll costs. 

See notes on page 186 in this section. 







184 Commonwealth of Virginia 






Contributions Contributions 

in Relation to as a Percentage of 



Actuarially 

the Actuarially 

Contributions 

Covered 

Covered 

Year Ended 

Determined 

Determined 

Deficiency 

Employee 

Em ployee 

June 30 

Contribution 

Contribution 

(Excess) 

Payroll (2) 

Payroll 


STATE POLICE OFFICERS' RETIREMENT SYSTEM (SPORS) 


2015 

$ 33,876 

$ 

28,417 

$ 

5,459 

$ 

110,059 

25.82% 

2014 

36,538 


27,711 


8,827 


112,010 

24.74% 

2013 

34,535 


26,193 


8,342 


105,872 

24.74% 

2012 

26,250 


11,441 


14,809 


102,701 

11.14% 

2011 

24,570 


7,460 


17,110 


96,128 

7.76% 

2010 

23,791 


15,714 


8,077 


98,757 

15.91% 

2009 

24,241 


20,175 


4,066 


100,626 

20.05% 

2008 

22,941 


20,989 


1,952 


101,106 

20.76% 

2007 

19,402 


16,358 


3,044 


97,892 

16.71% 

2006 

23,132 


15,258 


7,874 


92,526 

16.49% 


VIRGINIA LAW OFFICERS' RETIREMENT SYSTEM (VaLORS) 


2015 

$ 71,301 

$ 

59,824 

$ 

11,477 

$ 

338,562 

17.67% 

2014 

68,806 


52,169 


16,637 


352,492 

14.80% 

2013 

66,463 


50,392 


16,071 


340,489 

14.80% 

2012 

55,306 


24,481 


30,825 


347,181 

7.05% 

2011 

53,686 


17,255 


36,431 


337,010 

5.12% 

2010 

57,894 


39,027 


18,867 


345,020 

11.31% 

2009 

60,059 


50,932 


9,127 


357,922 

14.23% 

2008 

61,325 


55,929 


5,396 


352,643 

15.86% 

2007 

56,190 


48,338 


7,852 


323,115 

14.96% 

2006 

77,414 


52,611 


24,803 


309,656 

16.99% 


JUDICIAL RETIREMENT SYSTEM (JRS) 


2015 

$ 35,336 

$ 

31,560 

$ 

3,776 

$ 

61,092 

51.66% 

2014 

33,018 


27,728 


5,290 


61,020 

45.44% 

2013 

32,185 


27,028 


5,157 


59,481 

45.44% 

2012 

27,631 


18,907 


8,724 


59,053 

32.02% 

2011 

28,101 


17,303 


10,798 


60,058 

28.81% 

2010 

23,638 


17,065 


6,573 


62,139 

27.46% 

2009 

23,148 


21,000 


2,148 


60,853 

34.51% 

2008 

23,600 


22,386 


1,214 


58,896 

38.01% 

2007 

22,557 


20,530 


2,027 


56,293 

36.47% 

2006 

23,871 


16,206 


7,665 


53,047 

30.55% 


Commonwealth of Virginia 185 





Notes for Pension Schedules 


VRS 



State 

Teacher 

Political Subdivisions 

SPORS 

VaLORS 

JRS 

Valuation Date 

June 30, 2014 

June 30, 2014 

June 30, 2014 

June 30, 2014 

June 30, 2014 

June 30, 2014 

Actuarial Cost Method 

Entry Age Normal 

Entry Age Normal 

Entry Age Normal 

Entry Age Normal 

Entry Age Normal 

Entry Age Normal 

Actuarial Assumptions: 

Investment Rate of Return* 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

7.00% 

Projected Salary Increases:* 

State Employees/Teachers 

3.50% to 5.35% 

3.50% to 5.95% 

3.50% to 5.35% 

3.50% to 4.75% 

3.50% to 4.75% 

4.50% 

Political Subdivision - 
Non-Hazardous Duty Employees 

N/A 

N/A 

3.50% to 5.35% 

N/A 

N/A 

N/A 

Political Subdivision - 
Hazardous Duty Employees 

N/A 

N/A 

3.50% to 4.75% 

N/A 

N/A 

N/A 

Post-Retirement Benefits Increases** 

Ran 1 

Ran 2 

2.50% 

2.25% 

2.50% 

2.25% 

2.50% 

2.25% 

2.50% 

2.25% 

2.50% 

2.25% 

2.50% 

2.25% 


Includes inflation at 2.50%. 
Compounded annually. 


As discussed in Note 15, contact the Virginia Retirement System to obtain a copy of the individually published financial statements. 


186 Commonwealth of Virginia 







Commonwealth of Virginia 187 






Funding Progress for Other Postemployment Benefit Plans 

(Dollars in Millions) 


Actuarial 

Valuation Date 

June 30 

Actuarial Value 

of Assets [a] 

Actuarial 

Accrued Liability 

(AAL) [b] 

Unfunded 

AAL (UAAL) Funded Ratio 

[b-a] [a/b] 

Covered 

Payroll [c] 

UAAL as a 

Percentage 

of Covered 

Payroll [b-a]/[c] 





Group Life Insurance Fund 




2014 

$ 

992 

$ 

2,701 

$ 1,709 

36.7% 

$ 17,559 

9.7% 

2013 


837 


2,572 

1,735 

32.5% 

17,132 

10.1% 

2012 


756 


2,458 

1,702 

30.7% 

16,697 

10.2% 

2011 


852 


2,359 

1,507 

36.1% 

16,543 

9.1% 

2010 


929 


2,245 

1,316 

41.4% 

16,526 

8.0% 

2009 


967 


1,995 

1,028 

48.5% 

16,728 

6.1% 

2008 


975 


1,772 

797 

55.0% 

16,267 

4.9% 

2007 


880 


1,552 

672 

56.7% 

14,822 

4.5% 

2006 (1) 


751 


1,436 

685 

52.3% 

13,923 

4.9% 





Retiree Health Insurance Credit Fund (2) 




2014 

$ 

162 

$ 

2,334 

$ 2,172 

7.0% 

$ 14,956 

14.5% 

2013 


139 


2,273 

2,134 

6.1% 

14,688 

14.5% 

2012 


130 


2,258 

2,128 

5.8% 

14,211 

15.0% 

2011 


213 


2,195 

1,982 

9.7% 

14,111 

14.0% 

2010 (2) 


281 


2,162 

1,881 

13.0% 

14,220 

13.2% 

2009 (2) 


296 


2,007 

1,711 

14.8% 

14,339 

11.9% 

2008 (2) 


264 


1,943 

1,679 

13.6% 

13,686 

12.3% 

2007 (2) 


207 


1,883 

1,676 

11.0% 

11,935 

14.0% 





Disability Insurance Trust Fund 




2014 

$ 

380 

$ 

239 

$ (141) 

159.0% 

$ 3,585 

(3.9%) 

2013 


359 


228 

(131) 

157.4% 

3,473 

(3.8%) 

2012 


344 


303 

(41) 

113.7% 

3,433 

(1.2%) 

2011 


369 


296 

(73) 

124.6% 

3,372 

(2.2%) 

2010 (3) 


336 


311 

(25) 

108.0% 

3,168 

(0.8%) 

2009 (3) 


290 


291 

1 

99.7% 

4,080 

- 

2008 (3) 


313 


392 

79 

79.9% 

4,111 

1.9% 

2007 


264 


451 

187 

58.5% 

3,909 

4.8% 

2006 (1) 


192 


423 

231 

45.4% 

3,716 

6.2% 





Virginia Local Disability Program (6) 




2014 

$ 

- 

$ 

- 

$ 

- 

$ 34 

- 




Line of Duty Death and Disability (Line of Duty Trust Fund) (7) 



2014 

$ 

7 

$ 

226 

$ 219 

3.1% 

N/A 

- 

2013 


10 


204 

194 

4.9% 

N/A 

- 

2012 


6 


226 

220 

2.7% 

N/A 

- 

2011 


- 


399 

399 

- 

N/A 

- 

2010 (4) 


- 


576 

576 

- 

N/A 

- 

2009 


- 


373 

373 

- 

N/A 

- 

2008 


3 


185 

182 

1.6% 

N/A 

- 

2007 


- 


146 

146 

- 

N/A 

- 

2006 (1) 


- 


99 

99 

- 

N/A 

- 





Pre-Medicare Retiree Healthcare 




2014 

$ 

- 

$ 

1,342 

$ 1,342 

- 

$ 4,011 

33.5% 

2013 


- 


1,262 

1,262 

- 

3,857 

32.7% 

2012 


- 


1,351 

1,351 

- 

3,709 

36.4% 

2011 


- 


1,269 

1,269 

- 

3,566 

35.6% 

2010 (3) 


- 


1,298 

1,298 

- 

3,297 

39.4% 

2009 


- 


1,218 

1,218 

- 

3,170 

38.4% 

2007 (5) 


- 


982 

982 

- 

2,931 

33.5% 


(1) 2006 was the first actuarial valuation prepared using the required parameters of GASB Statement No. 43. 

(2) Data for 2007-2010 has been restated to include the state-funded Retiree Health Insurance Credit benefit for local employees. Similar information for 2006 was 
not available so that year has been excluded. 

(3) Data for 2008-2010 has been restated to include state-funded Long-term Care program. Prior years were funded by premiums paid to insurance carrier and the 
insurance carrier was responsible for the liability. 

(4) Contributions into the Other Postemployment Line of Duty Death and Disability Fund are based on the number of participants in the program using a per capita 
based contribution versus a payroll based contribution. 

(5) 2007 was the first actuarial valuation prepared for Pre-Medicare Retiree Healthcare. 

(6) The Virginia Local Disability Program was new effective January 1, 2013, as part of the Hybrid Retirement for non-state employers. 

(7) The Line of Duty Act Program was established and set up as a trust fund effective July 1, 2010. Contributions into the trust fund will be based on the number of 
participants in the program using a per capita-based contribution versus a payroll-based contribution. 

See Notes on following page. 


188 Commonwealth of Virginia 






Notes for Funding Progress for Other Postemployment Benefit Plans 



Group Life 

Insurance 

Fund 

Retiree 

Health Insurance 

Credit Fund 

Disability 

Insurance 

Trust Fund 

Virginia 

Local Disability 
Program 

Line of Duty 

Death and 

Disability 

Pre-Medicare 

Retiree 

Healthcare 

Valuation Date 

June 30, 2014 

June 30, 2014 

June 30, 2014 

June 30, 2014 

June 30, 2014 

July 1, 2013 

Actuarial Cost Method 

Entry Age Normal 

Entry Age Normal 

Entry Age Normal 

Entry Age Normal 

Entry Age Normal 

Projected Unit 
Credit 

Amortization Method 

Level Percent of 
Ray, Closed 

Level Percent of 
Pay, Closed 

Level Percent of 
Pay, Closed 

Level Percent of 
Pay, Closed 

Level Percent of 
Pay, Closed 

Level dollar, Open 

Payroll Growth Rate: 

State Employees 

3.0% 

3.0% 

3.0% 

N/A 

3.0% 

3.0% 

Teachers 

3.0% 

3.0% 

N/A 

3.0% 

N/A 

N/A 

Political Subdivision Employees 

3.0% 

3.0% 

N/A 

3.0% 

3.0% 

N/A 

State Police / Virginia Law Officers 

3.0% 

3.0% 

3.0% 

N/A 

3.0% 

3.0% 

Judges 

3.0% 

3.0% 

N/A 

N/A 

N/A 

N/A 

Effective Amortization Period (1) 

State Employees 

29.4 years 

29.0 years 

28.5 years 

N/A 

2.0 and 30.0 years 

30.0 years 

Teachers 

29.4 years 

28.8 years 

N/A 

20.0 years 

N/A 

N/A 

Political Subdivision Employees 

29.4 years 

20.0 years 

N/A 

20.0 years 

2.0 and 30.0 years 

N/A 

Asset Valuation Method 

State Employees and Teachers 

5-Year, 

Smoothed Market 

5-Year, 

Smoothed Market 

5-Year, 

Smoothed Market 

5-Year, 

Smoothed Market 

Market Value 

Market Value 

Political Subdivision Employees 
and State-Funded Local Employees 

5-Year, 

Smoothed Market 

Market Value 

N/A 

5-Year, 

Smoothed Market 

Market Value 

Market Value 

Actuarial Assumptions: 

Investment Rate of Return (2) 

7.0% 

7.0% 

7.0% 

7.0% 

4.8% and 7.0% 

4.0% 

Projected Salary Increases (3) 

State Employees 

3.5% to 5.4% 

3.5% to 5.4% 

3.5% to 5.4% 

N/A 

N/A 

4.0% 

Teachers 

3.5% to 6.0% 

3.5% to 6.0% 

N/A 

3.5% to 6.0% 

N/A 

N/A 

Political Subdivision Employees 

(Non-Hazardous Duty Employees) 

3.5% to 5.4% 

3.5% to 5.4% 

N/A 

3.5% to 5.4% 

N/A 

N/A 

Political Subdivision Employees 

(Hazardous Duty Employees) 

3.5% to 4.8% 

3.5% to 4.8% 

N/A 

N/A 

N/A 

N/A 

State Police / Virginia Law Officers 

3.5% to 4.8% 

3.5% to 4.8% 

3.5% to 4.8% 

N/A 

N/A 

4.0% 

Judges 

4.5% 

4.5% 

N/A 

N/A 

N/A 

N/A 

Medical Trend Assumptions (Linder Age 65) 

N/A 

N/A 

N/A 

N/A 

7.8% to 5.0% 


Medical Trend Assumptions (Ages 65 and Older) 

N/A 

N/A 

N/A 

N/A 

5.8% to 5.0% 


Year of Ultimate Trend Rate 

N/A 

N/A 

N/A 

N/A 

2020 



(1) The amortization period of the Unfunded Actuarial Accrued Liability (UAAL) was a closed 30-year period for the June 30, 2013, balance and 
closed 20-year period for each subsequent year. The Line of Duty Act Program amortization period is 30 years for the UAAL and two years 
for the loan. 

(2) Includes inflation rate of 2.5 percent. The Line of Duty Act Program uses 4.3 percent for the investment rate of return and 7.0 percent for the 
loan interest. 

(3) Projected salary increases for the Retiree Health Insurance Credit Fund are used in the application of the actuarial cost method. Projected 
salary increase factors are not applicable to the Line of Duty Act Program since neither the benefit nor the cost is salary-based. 


Commonwealth of Virginia 189 






Schedule of Employer Contributions - Other Postemployment Benefit Plans (1) 

(Dollars in Thousands) 


Year Ended 

June 30 


Annual 

Required 

Contribution 

Statutory 

Percentage Required 

Contributed Contribution 

Percentage 

Contributed 



Group Life Insurance Fund 



2015 

$ 

231,283 

90.2% $ 

208,505 

100.0% 

2014 


228,086 

90.2% 

205,623 

100.0% 

2013 


221,622 

90.2% 

199,796 

100.0% 

2012 


181,527 

26.1% 

47,293 

100.0% 

2011 


177,378 

25.2% 

44,744 

100.0% 

2010 


145,228 

65.5% 

95,185 

100.0% 

2009 


146,545 

92.1% 

135,019 

100.0% 

2008 


158,740 

100.0% 

158,740 

100.0% 



Retiree Health Insurance Credit Fund 



2015 

$ 

161,120 

89.9% $ 

144,862 

100.0% 

2014 


150,831 

95.1% 

143,425 

100.0% 

2013 


145,416 

95.1% 

138,282 

100.0% 

2012 


138,195 

37.5% 

51,882 

100.0% 

2011 


133,655 

36.5% 

48,736 

100.0% 

2010 


148,956 

66.7% 

99,356 

100.0% 

2009 


150,048 

96.6% 

144,989 

100.0% 

2008 


147,524 

100.0% 

147,524 

100.0% 



Disability Insurance Trust Fund 



2015 

$ 

26,244 

90.4% $ 

23,728 

100.0% 

2014 


20,610 

81.0% 

16,701 

100.0% 

2013 


21,032 

81.0% 

17,043 

100.0% 

2012 


30,285 

3.6% 

1,096 

100.0% 

2011 


28,646 

- 

- 

- 

2010 


76,530 

40.3% 

30,861 

100.0% 

2009 


78,120 

91.3% 

71,344 

100.0% 

2008 


97,975 

80.0% 

78,380 

100.0% 


Line of Duty Death and Disability (Line of Duty Trust Fund) (2) 


2015 

$ 

22,103 

47.0% $ 

10,381 

100.0% 

2014 


22,103 

47.0% 

10,381 

100.0% 

2013 


21,895 

42.7% 

9,341 

100.0% 

2012 


25,033 

33.3% 

8,323 

100.0% 

2011 


- 

- 

- 

- 

2010 


16,901 

53.8% 

9,084 

100.0% 

2009 


16,523 

51.5% 

8,511 

100.0% 

2008 


9,786 

102.5% 

10,026 

100.0% 



Pre-Medicare Retiree Healthcare 



2015 

$ 

207,046 

17.0% $ 

- 

- 

2014 


198,873 

17.3% 

- 

- 

2013 


182,970 

8.5% 

- 

- 

2012 


172,910 

21.2% 

- 

- 

2011 


166,984 

17.8% 

- 

- 

2010 


136,710 

17.4% 

- 

- 

2009 


131,925 

23.3% 

- 

- 

2008 


127,426 

25.2% 

- 

- 


(1) Contributions made by employers were not in all cases in accordance with the actuarially determined Annual Required Contribution (ARC), but 
they did meet statutory requirements. 

(2) Line of Duty Death and Disability became a cost sharing plan effective July 1, 2010. Accordingly, the net OPEB obligation at the beginning of 
the transition period has been reduced to zero. 


190 Commonwealth of Virginia 






Commonwealth of Virginia 191 






Claims Development Information - Risk Management 

(Dollars in Thousands) 


Comparison of Earned Revenues and Investment Income to Related Costs of Loss and Other Expenses 


Fiscal and Policy Year Ended 


2006 


2007 


2008 


2009 


1. Required contribution and investment revenue: 

Earned $ 6,166 $ 6,560 $ 6,759 $ 6,197 

Ceded (a) _ 


Net earned 

6,166 

6,560 

6,759 

6,197 

2. Unallocated expenses 

1,008 

1,047 

1,307 

1,272 

3. Estimated incurred claims and expenses, end of policy year: 





Incurred 

1,539 

2,060 

3,330 

3,681 

Ceded (a) 

- 

- 

- 

- 

Net incurred 

1,539 

2,060 

3,330 

3,681 

4. Net paid (cumulative) as of: 





End of policy year 

177 

106 

493 

300 

One year later 

745 

1,051 

1,697 

1,858 

Tw o years later 

1,421 

2,436 

3,476 

2,690 

Three years later 

2,087 

2,631 

3,753 

3,679 

Four years later 

2,176 

2,662 

3,834 

3,867 

Five years later 

2,554 

2,671 

5,065 

3,928 

Six years later 

2,591 

2,671 

5,084 

3,928 

Seven years later 

2,630 

2,671 

5,140 


Eight years later 

2,639 

2,671 



Nine years later 

2,688 




5. Reestimated ceded claims and expenses (a) 

- 

- 

- 

- 

6. Reestimated incurred claims and expenses: 





End of policy year 

1,539 

2,060 

3,330 

3,681 

One year later 

2,168 

3,316 

3,928 

3,742 

Tw o years later 

2,494 

3,224 

5,420 

3,943 

Three years later 

2,872 

2,887 

5,309 

4,721 

Four years later 

2,820 

2,730 

5,094 

4,555 

Five years later 

2,591 

2,731 

6,065 

4,000 

Six years later 

2,676 

2,731 

5,768 

3,936 

Seven years later 

2,698 

2,731 

5,968 


Eight years later 

2,698 

2,716 



Nine years later 

2,832 




7. Increase (decrease) in estimated net incurred 

1,293 

656 

2,638 

255 


claims and expense from end of policy year 


The Commonwealth, through the Department of the Treasury, Division of Risk Management, provides errors and omissions liability insurance and 
law enforcement professional liability insurance for local governmental units, which went into effect in fiscal year 1987. 

See Notes on page 196 in this section. 


192 Commonwealth of Virginia 







2010 2011 2012 


$ 5,485 $ 4,131 $ 5,019 

5,485 4,131 5,019 

1,269 1,310 1,382 


3,404 

3,213 

5,390 

3,404 

3,213 

5,390 


412 

396 

1,677 

2,236 

1,940 

4,468 

5,237 

3,943 

7,554 

6,744 

4,317 

8,137 

7,013 

4,380 


7,653 




3,404 

3,213 

5,390 

6,096 

3,919 

8,704 

8,428 

4,523 

9,107 

8,640 

4,570 

9,727 

8,692 

4,474 


7,894 




4,490 1,261 4,337 


2013 2014 2015 


5,043 $ 

8,500 $ 

8,487 

5,043 

8,500 

8,487 

1,273 

1,435 

1,331 

3,394 

4,025 

4,664 

3,394 

4,025 

4,664 

335 

367 

922 

3,401 

3210 



8,118 


3,394 

4,025 

4,664 

9,397 

6,454 


9,939 




6,545 2,429 


Commonwealth of Virginia 193 










Claims Development Information - Health Care 

(Dollars in Thousands) 


Comparison of Earned Revenues and Investment Income to Related Costs of Loss and Other Expenses 


Fiscal and Policy Year Ended 

2006 


2007 


2008 


2009 

1. Required contribution and investment revenue: 








Earned 

$ 184,360 

$ 

202,366 

$ 

211,034 

$ 

222,498 

Ceded(a) 

- 


- 


- 


- 

Net earned 

184,360 


202,366 


211,034 


222,498 

2. Unallocated expenses 

11,899 


13,782 


16,215 


16,400 

3. Estimated incurred claims and expenses, end of policy year: 








Incurred 

152,289 


163,787 


185,117 


214,411 

Ceded(a) 

- 


- 


- 


- 

Net incurred 

152,289 


163,787 


185,117 


214,411 

4. Net paid (cumulative) as of: 








End of policy year 

147,534 


159,769 


181,566 


204,655 

One year later 

N/A 


N/A 


N/A 


N/A 

Two years later 

N/A 


N/A 


N/A 


N/A 

Three years later 

N/A 


N/A 


N/A 


N/A 

Four years later 

N/A 


N/A 


N/A 


N/A 

Five years later 

N/A 


N/A 


N/A 


N/A 

Six years later 

N/A 


N/A 


N/A 


N/A 

Seven years later 

N/A 


N/A 


N/A 



Eight years later 

N/A 


N/A 





Nine years later 

N/A 







5. Reestimated ceded claims and expenses (a) 

- 


- 


- 


- 

6. Reestimated incurred claims and expenses: 








End of policy year 

152,289 


163,787 


185,117 


214,411 

One year later 

152,289 


163,787 


185,117 


214,411 

Two years later 

N/A 


N/A 


N/A 


N/A 

Three years later 

N/A 


N/A 


N/A 


N/A 

Four years later 

N/A 


N/A 


N/A 


N/A 

Five years later 

N/A 


N/A 


N/A 


N/A 

Six years later 

N/A 


N/A 


N/A 


N/A 

Seven years later 

N/A 


N/A 


N/A 



Eight years later 

N/A 


N/A 





Nine years later 

N/A 







7. Increase (decrease) in estimated net incurred 

- 


- 


- 


- 

claims and expense from end of policy year 








The Commonwealth, through its Department of Human Resource Management, provides health care insurance for local governmental units, which 
went into effect in fiscal year 1987. 

See Notes on page 196 in this section. 









194 Commonwealth of Virginia 








$ 

240,305 

$ 

246,730 

$ 

259,135 


240,305 


246,730 


259,135 


15,936 


15,849 


16,701 


215,376 


213,694 


250,019 


215,376 213,694 250,019 


214,371 

209,365 

235,058 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 


N/A 




215,376 

213,694 

250,019 

215,376 

213,694 

250,019 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 

N/A 


N/A 




$ 

284,526 

$ 

320,678 

$ 

343,470 


284,526 


320,678 


343,470 


18,781 


17,738 


22,748 


277,455 


290,557 


327,154 


277,455 


290,557 


327,154 


267,256 

N/A 


291,711 

N/A 


329,099 


N/A 


277,455 290,557 327,154 

277,455 290,557 

N/A 


Commonwealth of Virginia 195 







Notes for Claims Development Information Tables 


The tables on the previous four pages illustrate how the Risk Management and Health Care Claims Funds earned revenues (net of reinsurance) 

and investment income compare to related costs of loss (net of loss assumed by reinsurers) and other expenses assumed by the funds as of the 

end of each of the past several years. The rows of the tables are defined as follows: 

1. This line shows the total of each fiscal year’s gross earned contribution revenue and investment revenue, contribution revenue ceded to 
reinsurers, and net earned contribution revenue and reported investment revenue. 

2. This line shows each fiscal year's other operating costs of the funds, including overhead and claims expense not allocable to individual claims. 

3. This line shows the funds’ gross incurred claims and allocated claim adjustment expenses, claims assumed by reinsurers, and net incurred 

claims and adjustment expenses (both paid and accrued) as originally reported at the end of the first year in which the event that triggered 
coverage under the contract occurred (called policy year). 

4. This section of rows shows the cumulative net amounts paid as of the end of successive years for each policy year. 

5. This line shows the latest reestimated amount of claims assumed by reinsurers as of the end of the current year for each accident year. 

6. This section of rows shows how each policy year's net incurred claims increased or decreased as of the end of successive years. (This 

annual reestimation results from new information received on known claims, reevaluation of existing information on known claims, as well as 
emergence of new claims not previously known.) 

7. This line compares the latest reestimated net incurred claims amount to the amount originally established (line 3) and shows whether this 
latest estimate of net claims cost is greater or less than originally thought. As data for individual policy years mature, the correlation between 
original estimates and reestimated amounts is commonly used to evaluate the accuracy of net incurred claims currently recognized in less 
mature policy years. 

The columns of the tables show data for successive policy years. 

Notes: 

(a) During fiscal year 1997, the Commonwealth implemented GASB Statement No. 30, Risk Financing Omnibus. The Commonwealth has no 
reinsurers; therefore, the ceded amounts on lines 1, 3, and 5 are zero. 


196 Commonwealth of Virginia 






Commonwealth of Virginia 197 







198 Commonwealth of Virginia 






Nonmajor Governmental Funds 


Special Revenue Funds 

Special Revenue Funds account for specific revenue sources that are restricted or committed to finance particular functions and 


activities of the Commonwealth. 

The Health and Social Services Special Revenue Fund 

accounts for revenues and expenditures related to local 
health care assistance. 


The Other Special Revenue Fund accounts for revenues 
and expenditures related to business and agricultural 
activities, and miscellaneous activities throughout the 
Commonwealth. 


Debt Service Funds: 


The Debt Service Funds account for transactions related to resources retained and used for the payment of interest and principal 
on long-term obligations recorded in the Governmental Activities column on the Government-wide Statement of Net Position. 


Primary Government accounts for the payment of principal 
and interest on bonds used to acquire, construct, or improve 
parks, highways, and correctional, behavioral health, and 
parking facilities owned by the Commonwealth. 


The Virginia Public Building Authority accounts for the 
payment of principal and interest on bonds used to acquire, 
construct, and operate public buildings used by the 
Commonwealth and its political subdivisions. 


Capital Project Funds 

The Capital Project Funds are maintained to account for resources received and used for the acquisition , construction , or 
improvement of capital facilities not reported in the other governmental or proprietary funds. 


Primary Government accounts for the financial resources 
acquired through the issuance of General Obligation Bonds 
and Energy Performance Contracts. The resources are used 
to acquire, construct, or improve land, public buildings, and 
parking facilities owned by the Commonwealth. 


The Virginia Public Building Authority accounts for 
financial resources acquired through the issuance of section 
9(d) bonds. These resources are used to acquire, construct, 
finance, refinance and operate public buildings used by the 
Commonwealth and any of its political subdivisions. 
Resources are also used to finance or refinance 
reimbursements to localities or governmental entities for the 
Commonwealth’s share of the capital costs for certain 
authorized projects. 


Permanent Funds 


Permanent Funds are funds whose principal must remain intact. 

Commonwealth Health Research Fund provides financial 
grants for human health research benefiting the 
Commonwealth’s citizens. The entire fund balance is 
restricted for use as such as a condition of a legal 
settlement. 


Behavioral Health Endowment Funds provide funds for 
the welfare of patients in behavioral health facilities. The 
entire fund balance is restricted for use as such. 


Commonwealth of Virginia 199 










Combining Balance Sheet - Nonmajor Governmental Funds 

June 30, 2015 
(Dollars in Thousands) 


Special Revenue Funds 


Assets and Deferred Outflows of Resources 


Health and 

Social 

Services 


Other 


Total 

Cash and Cash Equivalents 

$ 

141,870 

$ 

444,080 

$ 

585,950 

Investments 


5,840 


12,890 


18,730 

Receivables, Net 


50,724 


20,832 


71,556 

Due from Other Funds 


1,050 


8,636 


9,686 

Due from External Parties (Fiduciary Funds) 


- 


71 


71 

Interfund Receivable 


- 


122,763 


122,763 

Inventory 


5,027 


308 


5,335 

Repaid Items 


18,226 


1,515 


19,741 

Other Assets 


16 


1,735 


1,751 

Loans Receivable from Component Units 


- 


18,992 


18,992 

Total Assets 


222,753 


631,822 


854,575 

Deferred Outflows of Resources 


- 


- 


- 

Total Assets and Deferred Outflows of Resources 

$ 

222,753 

$ 

631,822 

$ 

854,575 


Liabilities, Deferred Inflows of Resources, and Fund Balances 

Accounts Payable 

$ 

15,402 

$ 

27,973 

$ 

43,375 

Amounts Due to Other Governments 


- 


475 


475 

Due to Other Funds 


2,306 


3,712 


6,018 

Due to Component Units 


- 


- 


- 

Due to External Parties (Fiduciary Funds) 


1,174 


1,354 


2,528 

Unearned Revenue 


2,355 


4,058 


6,413 

Obligations Under Securities Lending Rogram 


716 


5,273 


5,989 

Other Liabilities 


80 


3,417 


3,497 

Long-term Liabilities Due Within One Year 


277 


48 


325 

Total Liabilities 


22,310 


46,310 


68,620 

Deferred Inflows of Resources 


26,931 


8,055 


34,986 

Total Liabilities and Deferred Inflows of Resources 


49,241 


54,365 


103,606 


Fund Balances: 

Nonspendable 


23,253 


1,742 


24,995 

Restricted 


34,945 


81,006 


115,951 

Committed 


109,474 


471,703 


581,177 

Assigned 


5,840 


23,006 


28,846 

Total Fund Balances 


173,512 


577,457 


750,969 

Total Liabilities, Deferred Inflows of Resources, and Fund Balances 

$ 

222,753 

$ 

631,822 

$ 

854,575 


200 Commonwealth of Virginia 




































































Debt Service Funds 


Capital Project Funds 



Primary 

Government 

Virginia Public 

Building 

Authority 


Total 


Primary 

Government 

Virginia Public 

Building 

Authority 


Total 


$ 

44,636 

$ 93 

$ 

44,729 

$ 

32,075 

$ 270,596 

$ 

302,671 


- 

- 


- 


- 

- 


- 


- 

- 


- 


- 

34 


34 


- 

- 


- 


- 

- 


- 


- 

- 


- 


- 

- 


- 


- 

- 


- 


- 

- 


- 


- 

- 


- 


- 

- 


- 


- 

- 


- 


- 

- 


- 


- 

- 


- 


- 

- 


- 


- 

- 


- 


- 

- 


- 


44,636 

93 


44,729 


32,075 

270,630 


302,705 


- 

- 


- 


- 

- 


- 

$ 

44,636 

$ 93 

$ 

44,729 

$ 

32,075 

$ 270,630 

$ 

302,705 



$ 

- 

$ 

$ 

- 

$ 

488 

$ 14,111 

$ 

14,599 


- 

- 


- 


- 

- 


- 


- 

- 


- 


- 

- 


- 


- 

- 


- 


21 

- 


21 


- 

- 


- 


- 

- 


- 


- 

- 


- 


- 

- 




- 

- 


- 


- 

- 


- 


- 

- 


- 


- 

- 




- 

- 


- 


- 

- 


- 


- 

- 


- 


509 

14,111 


14,620 


- 

- 


- 


- 

- 


- 


- 

- 


- 


509 

14,111 


14,620 



- 


- 


- 

- 


- 


- 


44,636 


93 


44,729 

31,566 


256,519 


288,085 


- 


- 


- 

- 


- 


- 


- 


- 


- 

- 


- 


- 


44,636 


93 


44,729 

31,566 


256,519 


288,085 

$ 

44,636 

$ 

93 

$ 

44,729 

$ 32,075 

$ 

270,630 

$ 

302,705 


Continued on next page 


Commonwealth of Virginia 201 











































































































Combining Balance Sheet - Nonmajor Governmental Funds (Continued from previous page) 
June 30, 2015 
(Dollars in Thousands) 


Permanent Funds 


Assets and Deferred Outflows of Resources 

Commonwealth 

Health 

Research 

Board 

Behavioral 

Health 

Endowment 

Funds 


Total 

Total 

Nonmajor 

Governmental 

Funds 








Cash and Cash Equivalents 

$ 

197 

$ 138 

$ 

335 

$ 

933,685 

Investments 


35,846 

- 


35,846 


54,576 

Receivables, Net 


- 

- 


- 


71,590 

Due from Other Funds 


- 

- 


- 


9,686 

Due from External Parties (Fiduciary Funds) 


- 

- 


- 


71 

Interfund Receivable 


- 

- 


- 


122,763 

Inventory 


- 

- 


- 


5,335 

Prepaid Items 


- 

- 


- 


19,741 

Other Assets 


- 

- 


- 


1,751 

Loans Receivable from Component Units 


- 

- 


- 


18,992 

Total Assets 


36,043 

138 


36,181 


1,238,190 

Deferred Outflows of Resources 


- 

- 


- 


- 

Total Assets and Deferred Outflows of Resources 

$ 

36,043 

$ 138 

$ 

36,181 

$ 

1,238,190 


Liabilities, Deferred Inflows of Resources, and Fund Balances 

Accounts Payable 

$ 

7 

$ 

$ 

7 

$ 

57,981 

Amounts Due to Other Governments 


- 

- 


- 


475 

Due to Other Funds 


1 

- 


1 


6,019 

Due to Component Units 


- 

- 


- 


21 

Due to External Parties (Fiduciary Funds) 


1 

- 


1 


2,529 

Unearned Revenue 


- 

- 


- 


6,413 

Obligations Under Securities Lending Ffogram 


- 

- 


- 


5,989 

Other Liabilities 


- 

- 


- 


3,497 

Long-term Liabilities Due Within One Year 


- 

- 


- 


325 

Total Liabilities 


9 

- 


9 


83,249 

Deferred Inflows of Resources 


- 

- 


- 


34,986 

Total Liabilities and Deferred Inflow s of Resources 


9 

- 


9 


118,235 


Fund Balances: 

Nonspendable 


34,677 

48 


34,725 


59,720 

Restricted 


1,357 

90 


1,447 


450,212 

Committed 


- 

- 


- 


581,177 

Assigned 


- 

- 


- 


28,846 

Total Fund Balances 


36,034 

138 


36,172 


1,119,955 

Total Liabilities, Deferred Inflows of Resources, and Fund Balances 

$ 

36,043 

$ 138 

$ 

36,181 

$ 

1,238,190 


202 Commonwealth of Virginia 



















































































Commonwealth of Virginia 203 






Combining Statement of Revenues, Expenditures, and Changes in Fund Balance - 
Nonmajor Governmental Funds 


For the Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 


Special Revenue Funds 


Health and 
Social 


Revenues 

Services 


Other 


Total 

Taxes 

$ 9,927 

$ 

78,737 

$ 

88,664 

Rights and Privileges 

142,932 


196,968 


339,900 

Institutional Revenue 

246,227 


18,257 


264,484 

Interest, Dividends, Rents, and Other Investment Income 

362 


12,399 


12,761 

Other 

97,023 


249,907 


346,930 

Total Revenues 

496,471 


556,268 


1,052,739 


Expenditures 

Current: 

General Government 

157 


66,507 


66,664 

Education 

618 


20,006 


20,624 

Transportation 

- 


5,646 


5,646 

Resources and Economic Development 

35,951 


307,166 


343,117 

Individual and Family Services 

422,353 


59,069 


481,422 

Administration of Justice 

481 


71,438 


71,919 

Capital Outlay 

3,509 


12,120 


15,629 

Debt Service: 

Principal Retirement 

- 


- 


- 

Interest and Charges 

- 


- 



Total Expenditures 

463,069 


541,952 


1,005,021 

Revenues Over (Under) Expenditures 

33,402 


14,316 


47,718 


Other Financing Sources (Uses) 

Transfers In 

4,625 


55,925 


60,550 

Transfers Out 

(35,084) 


(55,430) 


(90,514) 

Notes Issued 

- 


- 


- 

Insurance Recoveries 

13 


578 


591 

Capital Leases Issued 

- 


154 


154 

Bonds Issued 

- 


- 


- 

Premium on Debt Issuance 

- 


- 


- 

Refunding Bonds Issued 

- 


- 


- 

Sale of Capital Assets 

107 


- 


107 

Payment to Refunded Bond Escrow Agents 

- 


- 



Total Other Financing Sources (Uses) 

(30,339) 


1,227 


(29,112) 


Net Change in Fund Balances 

3,063 


15,543 


18,606 

Fund Balance, July 1 

170,449 


561,914 


732,363 

Fund Balance, June 30 

$ 173,512 

$ 

577,457 

$ 

750,969 


204 Commonwealth of Virginia 






































































Debt Service Funds 

Capital Project Funds 

Virginia 

Public 

Virginia 

Public 

Primary Building 

Government Authority Total 

Primary Building 

Government Authority Total 

$ $ - $ 

$ - $ - $ 


2 - 2 

7,217 - 7,217 

7,219 - 7,219 

35 211 246 

35 211 246 


258,370 182,730 441,100 

174,074 101,418 275,492 

432,444 284,148 716,592 

(425,225) (284,148) (709,373) 

11,774 189,509 201,283 

11,774 189,509 201,283 

(11,739) (189,298) (201,037) 

425,303 283,138 708,441 

1,461 - 1,461 

- 

(7,782) (7,782) 

6,921 - 6,921 


- 

395,590 395,590 

23,003 60,611 83,614 

40,112 40,112 

102,520 433,120 535,640 

_ 

(125,039) (492,628) (617,667) 

- 

425,787 284,241 710,028 

8,382 427,920 436,302 

562 93 655 

44,074 - 44,074 

$ 44,636 $ 93 $ 44,729 

(3,357) 238,622 235,265 

34,923 17,897 52,820 

$ 31,566 $ 256,519 $ 288,085 


Continued on next page 


Commonwealth of Virginia 205 



































































































Combining Statement of Revenues, Expenditures, and Changes in Fund Balance - 
Nonmajor Governmental Funds (Continued from previous page) 

For the Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 


Permanent Funds 


Revenues 

Commonwealth 

Flealth 

Research 

Board 

Behavioral 

Health 

Endowment 

Funds 


Total 

Total 

Nonmajor 

Governmental 

Funds 






Taxes 

$ 

$ 

$ 

- 

$ 88,664 

Rights and Privileges 

- 

- 


- 

339,900 

Institutional Revenue 

- 

- 


- 

264,484 

Interest, Dividends, Rents, and Other Investment Income 

1,563 

- 


1,563 

14,572 

Other 

30 

- 


30 

354,177 

Total Revenues 

1,593 

- 


1,593 

1,061,797 


Expenditures 

Current: 

General Government 

- 

- 


- 

66,664 

Education 

- 

- 


- 

20,624 

Transportation 

- 

- 


- 

5,646 

Resources and Economic Development 

- 

- 


- 

343,117 

Individual and Family Services 

1,087 

4 


1,091 

482,513 

Administration of Justice 

- 

- 


- 

71,919 

Capital Outlay 

- 

- 


- 

216,912 

Debt Service: 

Principal Retirement 

- 

- 


- 

441,100 

Interest and Charges 

- 

- 


- 

275,492 

Total Expenditures 

1,087 

4 


1,091 

1,923,987 

Revenues Over (Under) Expenditures 

506 

(4) 


502 

(862,190) 


Other Financing Sources (Uses) 

Transfers In 

- 

- 


- 

770,452 

Transfers Out 

- 

- 


- 

(98,296) 

Notes Issued 

- 

- 


- 

6,921 

Insurance Recoveries 

- 

- 


- 

591 

Capital Leases Issued 

- 

- 


- 

154 

Bonds Issued 

- 

- 


- 

395,590 

Premium on Debt Issuance 

- 

- 


- 

123,726 

Refunding Bonds Issued 

- 

- 


- 

535,640 

Sale of Capital Assets 

- 

- 


- 

107 

Payment to Refunded Bond Escrow Agents 

- 

- 


- 

(617,667) 

Total Other Financing Sources (Uses) 

- 

- 


- 

1,117,218 


Net Change in Fund Balances 

506 

(4) 


502 

255,028 

Fund Balance, July 1 

35,528 

142 


35,670 

864,927 

Fund Balance, June 30 

$ 36,034 

$ 138 

s 

36,172 

$ 1,119,955 


206 Commonwealth of Virginia 












































































Commonwealth of Virginia 207 






Schedule of Revenues, Expenditures, and Changes in Fund Balance — 
Budget and Actual — Nonmajor Special Revenue Funds 

For the Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 


Health and Social Services 


Final/Actual 

Variance 


Revenues: 

Original 

Budget 

Final 

Budget 


Actual 

Positive 

(Negative) 

Taxes: 

Motor Fuel 

$ 

$ 

$ 

- 

$ 

Deeds, Contracts, Suits 

- 

- 


- 


Alcoholic Beverage Sales 

- 

- 


- 

- 

Tobacco Products 

- 

- 


- 


Public Service Corporations 

11,297 

11,297 


9,927 

(1,370) 

Other Taxes 

- 

- 


- 


Rights and Privileges 

143,790 

144,441 


143,819 

(622) 

Sales of Property and Commodities 

- 

5,361 


1,492 

(3,869) 

Assessments and Receipts for Support of Special Services 

- 

- 


- 

- 

Institutional Revenue 

234,510 

247,745 


251,812 

4,067 

Interest, Dividends, and Rents 

305 

130 


682 

552 

Fines, Forfeitures, Court Fees, Penalties, and Escheats 

517 

381 


2,021 

1,640 

Receipts from Cities, Counties, and Tow ns 

56,936 

56,936 


59,541 

2,605 

Private Donations, Gifts and Contracts 

3,216 

3,500 


2,872 

(628) 

Other 

31,774 

32,663 


31,598 

(1,065) 

Total Revenues 

482,345 

502,454 


503,764 

1,310 


Expenditures: 

Current: 

General Government 

282 

282 


152 

130 

Education 

1,020 

1,006 


615 

391 

Transportation 

- 

- 


- 


Resources and Economic Development 

34,304 

38,217 


36,077 

2,140 

Individual and Family Services 

537,519 

486,320 


433,768 

52,552 

Administration of Justice 

375 

607 


466 

141 

Capital Outlay 

1,059 

6,059 


3,509 

2,550 

Total Expenditures 

574,559 

532,491 


474,587 

57,904 

Revenues Over (Under) Expenditures 

(92,214) 

(30,037) 


29,177 

59,214 


Other Financing Sources (Uses): 

Transfers: 

Transfers In 

225 

225 


4,625 

4,400 

Transfers Out 

(19,641) 

(25,290) 


(35,084) 

(9,794) 

Total Other Financing Sources (Uses) 

(19,416) 

(25,065) 


(30,459) 

(5,394) 

Revenues and Other Sources Over (Under) 

Expenditures and Other Uses 

(111,630) 

(55,102) 


(1,282) 

53,820 

Fund Balance, July 1 

148,121 

148,121 


148,121 

- 

Fund Balance, June 30 

$ 36,491 

$ 93,019 

$ 

146,839 

$ 53,820 


See Notes on page 210 in this section. 


208 Commonwealth of Virginia 














































































Other 


Final/Actual 

Variance 

Original Final Positive 



Budget 

Budget 


Actual 

(Negative) 



$ 

33,355 

$ 32,494 

$ 

33,924 

$ 1,430 


549 

549 


549 

- 


879 

854 


846 

(8) 


83 

83 


119 

36 


10,174 

10,335 


10,593 

258 


34,059 

26,416 


32,249 

5,833 


187,855 

202,656 


197,658 

(4,998) 


4,275 

8,179 


6,564 

(1,615) 


115,145 

113,985 


115,779 

1,794 


20,926 

19,183 


18,290 

(893) 


11,500 

11,487 


12,461 

974 


51,193 

36,400 


49,690 

13,290 


1,238 

1,248 


1,188 

(60) 


1,906 

1,128 


4,131 

3,003 


53,233 

59,051 


72,054 

13,003 


526,370 

524,048 


556,095 

32,047 





75,617 

82,164 


71,545 

10,619 


24,390 

26,504 


20,435 

6,069 


8,018 

8,207 


5,543 

2,664 


322,729 

341,632 


305,913 

35,719 


66,054 

67,619 


58,817 

8,802 


85,702 

94,094 


71,469 

22,625 


20,058 

27,082 


12,286 

14,796 


602,568 

647,302 


546,008 

101,294 


(76,198) 

(123,254) 


10,087 

133,341 





14,875 

15,231 


55,845 

40,614 


(15,979) 

(45,082) 


(55,430) 

(10,348) 


(1,104) 

(29,851) 


415 

30,266 



(77,302) 

(153,105) 


10,502 

163,607 


577,980 

577,980 


577,980 

- 

$ 

500,678 

$ 424,875 

$ 

588,482 

$ 163,607 


Commonwealth of Virginia 209 











































































Notes for Schedule of Revenues, Expenditures, and Changes in Fund Balance - 
Budget and Actual - Nonmajor Special Revenue Funds 


1. Basis of Budgeting vs. Modified Accrual Basis Fund Balance (1) 

Since the presentation of financial data on the basis of budgeting differs from that presented under accounting principles 
generally accepted in the United States of America, a schedule reconciling the fund balance on a budgetary basis at June 30, 
2015, to the fund balance on a modified accrual basis follows. 


(Dollars in Thousands) 


Health and 
Social 

Services Other 


Fund Balance, Basis of Budgeting 

Adjustments from Budget to Modified Accrual: 
Accrued Revenues: 

Taxes 

Other Revenue/Transfers 
Accrued Expenditures/Transfers 
Fund Reclassification - Budget to Modified Accrual 
Fund Balance, Modified Accrual Basis 


$ 146,839 $ 588,482 


20,958 

4,398 

_ 1,317 

$ 173,512 


5,902 

9,062 

(26,725) 

_ 736 

$ 577,457 


2. Appropriations 

The amounts presented in the Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - 
Nonmajor Special Revenue Funds are principally on a cash basis and represent the original budget adopted by the General 
Assembly and all supplemental appropriations and transfers. The following schedule reconciles original appropriations to the 
final adjusted expenditure appropriations for the Nonmajor Special Revenue Funds, at June 30, 2015. 


(Dollars in Thousands) 

Health and 

Social 

Services 


Other 

Appropriations (1) 

$ 574,559 

$ 

602,568 

Supplemental Appropriations: 

Reappropriations (2) 

6,059 


48,263 

Subsequent Executive (3) 

9,793 


40,361 

Subsequent Legislative (4) 

(63,847) 


12,267 

Capital Outlay Reversions (5) 

- 


(6,613) 

Transfers (6) 

6,986 


1,365 

Capital Outlay Adjustment (7) 

(1,059) 


(50,909) 

Appropriations, as adjusted 

$ 532,491 

$ 

647,302 


1. Represents the budget appropriated through Chapter 2, 2014 Acts of Assembly, as amended by Chapter 665, 2015 Acts of Assembly. 

2. Actions taken to reappropriate any prior year unexpended balances per authority of the language in the Appropriation Act. 

3. Actions taken by the Governor to appropriate any additional revenues collected so that they can be legally spent. 

4. Actions taken by the Governor and the General Assembly to adjust the budget. 

5. Represents reversions of unexpended capital outlay balances. 

6. Represents transfers required by the Appropriation Act. 

7. Capital outlay appropriations cover the projects' lives and usually extend beyond the current fiscal year. These amounts have been adjusted 
to report the amount authorized for expenditure during the current fiscal year. 


210 Common wealth of Virginia 






Nonmajor Enterprise Funds 


The Enterprise Funds account for operations that are financed and operated in a manner similar to private business enterprises. It 
is the intent that the cost of providing such goods or services will be recovered through user charges. 


Department of Alcoholic Beverage Control operates 
facilities for the distribution and sale of distilled spirits and 
wine. 

Risk Management accounts for pooled resources received 
and used by the Department of the Treasury for financing 
local government insurance programs. This includes Local 
Entities Bond Insurance, Public Officials Insurance and Law 
Enforcement Insurance. 

Local Choice Health Care administers a health care plan 
for the employees of participating local governments. 

Route 460 Funding Corporation of Virginia (Corporation) 

accounts for the development, design, construction, 
financing, maintenance, tolling and operation of the Route 
460 Corridor Improvements Project. The Corporation is a 
blended component unit of the Department of Transportation 
(Primary Government). The planned collection of tolls upon 
project completion served as the security for the outstanding 
debt issued to construct the facility. As further discussed in 
Note 31, the Corporation’s continued operations will cease 
during fiscal year 2016. 


Virginia Industries for the Blind manufactures products for 
sale to governments, certain private organizations, and the 
general public. 

Consolidated Laboratory provides water testing services 
and a newborn screening program. 

eVA Procurement System accounts for the statewide 
electronic procurement system. 

Department of Environmental Quality accounts for the 
Title V program that offers services to the general public. 

Wireless E-911 Service Board assists in the establishment 
of wireless E-911 service in Virginia localities. 

Virginia Museum of Fine Arts accounts for gift shop and 
food service activities. 

Science Museum of Virginia accounts for gift shop 
activities. 

Behavioral Health Local Funds account for the canteen 
store and work activity programs. 


Commonwealth of Virginia 211 







Combining Statement of Fund Net Position - Nonmajor Enterprise Funds 

June 30, 2015 
(Dollars in Thousands) 



Department 



Local 


of Alcoholic 



Choice 


Beverage 

Risk 


Health 


Control 

Management 


Care 

Assets and Deferred Outflows of Resources 





Current Assets: 

Cash and Cash Equivalents 

$ 1,120 

$ 23,399 

$ 

95,997 

Investments 

2 

- 


128 

Receivables, Net 

4,361 

- 


33,111 

Due From Other Funds 

- 

- 


- 

Inventory 

61,565 

- 


- 

Prepaid Items 

1,047 

1 


- 

Other Assets 

200 

- 


- 

Restricted Cash and Cash Equivalents 

- 

- 


- 

Restricted Investments 

- 

- 


- 

Total Current Assets 

68,295 

23,400 


129,236 

Noncurrent Assets: 

Investments 

- 

- 


- 

Nondepreciable Capital Assets 

5,068 

- 


- 

Depreciable Capital Assets, Net 

6,555 

64 


- 

Total Noncurrent Assets 

11,623 

64 


- 

Total Assets 

79,918 

23,464 


129,236 

Deferred Outflows of Resources 

7,272 

89 


- 

Total Assets and Deferred Outflow s of Resources 

87,190 

23,553 


129,236 


Liabilities and Deferred Inflows of Resources 

Current Liabilities: 

Accounts Payable 

27,025 

482 


4,166 

Amounts Due to Other Governments 

- 

- 


- 

Due to Other Funds 

13,994 

25 


- 

Due to External Parties (Fiduciary Funds) 

422 

8 


- 

Interfund Payable 

31,065 

6,000 


- 

Unearned Revenue 

302 

635 


- 

Obligations Under Securities Lending Program 

50 

- 


3,657 

Other Liabilities 

- 

- 


- 

Claims Payable Due Within One Year 

- 

7,429 


31,839 

Long-term Liabilities Due Within One Year 

2,832 

41 


- 

Total Current Liabilities 

75,690 

14,620 


39,662 

Noncurrent Liabilities: 

Claims Payable Due in More Than One Year 

- 

21,843 


- 

Long-term Liabilities Due in More Than One Year 

84,740 

796 


- 

Total Noncurrent Liabilities 

84,740 

22,639 


- 

Total Liabilities 

160,430 

37,259 


39,662 

Deferred Inflows of Resources 

11,521 

115 


- 

Total Liabilities and Deferred Inflow s of Resources 

171,951 

37,374 


39,662 


Net Position 

Net Investment in Capital Assets 

11,623 

64 


- 

Unrestricted 

(96,384) 

(13,885) 


89,574 

Total Net Position (Deficit) 

$ (84,761) 

$ (13,821) 

$ 

89,574 


212 Common wealth of Virginia 



























































































Route 460 Virginia Department Wireless Virginia 

Funding Industries eVA of E-911 Museum 

Corporation for the Consolidated Procurement Environmental Service of 

of Virginia _ Blind _ Laboratory System Quality Board Fine Arts 



110 

2,529 

414 

1,651 

344 

6,841 

273 

- 

- 

- 

- 

- 

2,284 

- 

- 

184 

294 

399 

789 

17 

11 

- 

22 

22 

24 

46 

9 

9 

- 

- 

- 

- 

- 

- 

- 

- 

- 

989 

- 

2 

- 

- 

- 

- 

- 

- 

- 

- 

- 

5,863 

- 

- 

- 

- 

- 

139 

- 

- 

- 

- 

- 

- 

- 

320,110 

169 

181 

201 

524 

66 

- 

326,083 

2,904 

1,900 

2,275 

1,705 

9,217 

432 



- 

- 

- 

- 

- 

- 

- 


- 

3,693 

4,158 

5,519 

9,139 

1,829 

1,646 


- 

3,693 

4,158 

5,519 

9,139 

1,829 

1,646 


326,083 

6,597 

6,058 

7,794 

10,844 

11,046 

2,078 


- 

537 

620 

832 

1,343 

270 

242 


326,083 

7,134 

6,678 

8,626 

12,187 

11,316 

2,320 




- 

11,246 

1,594 

31 

- 

- 

- 


1,261 

8,805 

(1,740) 

4,474 

(8,304) 

9,596 

179 

$ 

1,261 $ 

20,051 $ 

(146) $ 

4,505 $ 

(8,304) $ 

9,596 $ 

179 


Continued on next page 


Commonwealth of Virginia 213 






























































































































































Combining Statement of Fund Net Position - Nonmajor Enterprise Funds (Continued from previous page) 
June 30, 2015 
(Dollars in Thousands) 


Assets and Deferred Outflows of Resources 

Science 

Museum 

of 

Virginia 


Behavioral 

Health 

Local 

Funds 


Total 

Current Assets: 

Cash and Cash Equivalents 

$ 205 

$ 

432 

$ 

161,598 

Investments 

- 


- 


130 

Receivables, Net 

- 


- 


96,428 

Due From Other Funds 

2 


- 


733 

Inventory 

62 


- 


65,931 

Prepaid Items 

1 


- 


1,629 

Other Assets 

69 


- 


120,391 

Restricted Cash and Cash Equivalents 

- 


- 


135,458 

Restricted Investments 

- 


- 


25,776 

Total Current Assets 

339 


432 


608,074 

Noncurrent Assets: 

Investments 

- 


- 


- 

Nondepreciable Capital Assets 

- 


- 


6,579 

Depreciable Capital Assets, Net 

22 


- 


18,001 

Total Noncurrent Assets 

22 


- 


24,580 

Total Assets 

361 


432 


632,654 

Deferred Outflows of Resources 

11 


- 


9,615 

Total Assets and Deferred Outflows of Resources 

372 


432 


642,269 


Liabilities and Deferred Inflows of Resources 

Current Liabilities: 

Accounts Payable 

91 


- 


43,926 

Amounts Due to Other Governments 

- 


- 


2,284 

Due to Other Funds 

9 


- 


15,722 

Due to External Parties (Fiduciary Funds) 

- 


- 


562 

Interfund Payable 

- 


- 


37,065 

Unearned Revenue 

2 


- 


1,930 

Obligations Under Securities Lending Program 

- 


- 


3,707 

Other Liabilities 

- 


178 


6,180 

Claims Payable Due Within One Year 

- 


- 


39,268 

Long-term Liabilities Due Within One Year 

- 


- 


324,124 

Total Current Liabilities 

102 


178 


474,768 

Noncurrent Liabilities: 

Claims Payable Due in More Than One Year 

- 


- 


21,843 

Long-term Liabilities Due in More Than One Year 

135 


- 


111,655 

Total Noncurrent Liabilities 

135 


- 


133,498 

Total Liabilities 

237 


178 


608,266 

Deferred Inflows of Resources 

18 


- 


15,498 

Total Liabilities and Deferred Inflow s of Resources 

255 


178 


623,764 


Net Position 

Net Investment in Capital Assets 

22 


- 


24,580 

Unrestricted 

95 


254 


(6,075) 

Total Net Position (Deficit) 

$ 117 

$ 

254 

$ 

18,505 


214 Common wealth of Virginia 




























































































Commonwealth of Virginia 215 






Combining Statement of Revenues, Expenses, and Changes in Fund Net Position - 
Nonmajor Enterprise Funds 


For the Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 


Operating Revenues 

Department Local 

of Alcoholic Choice 

Beverage Risk Health 

Control Management Care 

Charges for Sales and Services 

$ 710,750 $ 8,487 $ 342,797 

Other 

19,265 

Total Operating Revenues 

Operating Expenses 

730,015 8,487 342,797 

Cost of Sales and Services 

412,216 

Frizes and Claims 

8,895 327,154 

Personal Services 

101,021 665 

Contractual Services 

29,178 583 19,572 

Supplies and Materials 

3,393 4 

Depreciation 

2,664 8 

Rent, Insurance, and Other Related Charges 

27,954 68 

Non-recurring Cost Estimate Payments to Providers 

Other 

Total Operating Expenses 

Operating Income (Loss) 

2,895 4 3,175 

579,321 10,227 349,901 

150,694 (1,740) (7,104) 

Nonoperating Revenues (Expenses) 


Interest, Dividends, Rents, and Other Investment Income 

00 

CD 

O 

C\j 

Other 

9,063 - (9) 

Total Nonoperating Revenues (Expenses) 

9,273 - 672 

Income (Loss) Before Special Item and Transfers 

159,967 (1,740) (6,432) 

Special Item 

. 

Transfers In 

57 

Transfers Out 

(161,203) 

Change in Net Position 

(1,179) (1,740) (6,432) 

Total Net Ftosition (Deficit), July 1, as restated 

(83,582) (12,081) 96,006 

Total Net Fbsition (Deficit), June 30 

$ (84,761) $ (13,821) $ 89,574 


216 Common wealth of Virginia 

























































eVA 


Route 460 
Funding 
Corporation 


Virginia 
Industries 
for the 


Consolidated 


Procurement 


Department 

of 

Environmental 


Wireless 

E-911 

Service 


Virginia 

Museum 

of 



of Virginia 


Blind 

Laboratory 


System 


Quality 


Board 


Fine Arts 


$ 

- 

$ 

44,276 

$ 10,107 

$ 

19,445 

$ 

10,814 

$ 

54,604 

$ 

7,053 


- 


- 

- 


- 


- 


- 


19 


- 


44,276 

10,107 


19,445 


10,814 


54,604 


7,072 



- 


- 

- 


- 


- 


- 


2,492 


- 


- 

- 


- 


- 


- 


- 


- 


6,734 

3,297 


4,767 


8,891 


1,456 


2,979 


- 


813 

1,060 


16,153 


840 


826 


620 


- 


32,529 

3,163 


4 


91 


12 


127 


- 


428 

377 


30 


- 


- 


- 


- 


1,940 

682 


1,606 


633 


3 


- 


- 


- 

- 


- 


- 


34,347 


- 


524 


278 

51 


3 


- 


1 


- 


524 


42,722 

8,630 


22,563 


10,455 


36,645 


6,218 


(524) 


1,554 

1,477 


(3,118) 


359 


17,959 


854 




839 


- 

- 


- 


- 


- 


- 


(12,500) 


11 

(184) 


- 


- 


- 


- 


(11,661) 


11 

(184) 


- 


- 


- 


- 



(12,185) 


1,565 

1,293 


(3,118) 


359 


17,959 


854 


34,437 


- 

- 


- 


- 


- 


- 


- 


- 

- 


- 


- 


- 


- 


- 


- 

(1,500) 


(3,117) 


- 


(13,450) 


(522) 


22,252 


1,565 

(207) 


(6,235) 


359 


4,509 


332 


(20,991) 


18,486 

61 


10,740 


(8,663) 


5,087 


(153) 

$ 

1,261 

$ 

20,051 

$ (146) 

$ 

4,505 

$ 

(8,304) 

$ 

9,596 

$ 

179 


Continued on next page 


Commonwealth of Virginia 217 












































































































Combining Statement of Revenues, Expenses, and Changes in Fund Net Position - 
Nonmajor Enterprise Funds (Continued from previous page) 

For the Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 



Science 


Behavioral 




Museum 


Health 




of 


Local 




Virginia 


Funds 


Total 

Operating Revenues 






Charges for Sales and Services 

$ 421 

$ 

486 

$ 

1,209,240 

Other 

- 


- 


19,284 

Total Operating Revenues 

421 


486 


1,228,524 

Operating Expenses 

Cost of Sales and Services 

191 


467 


415,366 

Prizes and Claims 

- 


- 


336,049 

Personal Services 

182 


- 


129,992 

Contractual Services 

4 


- 


69,649 

Supplies and Materials 

3 


- 


39,326 

Depreciation 

7 


- 


3,514 

Rent, Insurance, and Other Related Charges 

- 


- 


32,886 

Non-recurring Cost Estimate Payments to Providers 

- 


- 


34,347 

Other 

14 


- 


6,945 

Total Operating Expenses 

401 


467 


1,068,074 

Operating Income (Loss) 

20 


19 


160,450 


Nonoperating Revenues (Expenses) 

Interest, Dividends, Rents, and Other Investment Income 

- 


- 


1,730 

Other 

- 


- 


(3,619) 

Total Nonoperating Revenues (Expenses) 

- 


- 


(1,889) 


Income (Loss) Before Special Item and Transfers 

20 


19 


158,561 

Special tem 

- 


- 


34,437 

Transfers In 

- 


- 


57 

Transfers Out 

(60) 


(16) 


(179,868) 

Change in Net Position 

(40) 


3 


13,187 

Total Net Position (Deficit), July 1, as restated 

157 


251 


5,318 

Total Net Position (Deficit), June 30 

$ 117 

$ 

254 

$ 

18,505 


218 Common wealth of Virginia 



























































Commonwealth of Virginia 219 






Combining Statement of Cash Flows - Nonmajor Enterprise Funds 

For the Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 


Department Local 

of Alcoholic Choice 

Beverage Risk Health 

Control Management _ Care 


Cash Flows from Operating Activities 


Receipts for Sales and Services 

$ 723,579 $ 

8,478 $ 

336,781 

Internal Activity-Receipts from Other Funds 

- 

- 

- 

Internal Activity-Payments to Other Funds 

- 

- 

- 

Payments to Suppliers for Goods and Services 

(449,859) 

- 

- 

Payments for Contractual Services 

(29,178) 

(466) 

(19,355) 

Payments for Prizes, Claims, and Loss Control 

- 

(9,988) 

(329,099) 

Payments to Employees 

(101,175) 

(870) 

- 

Payments to Providers for Non-recurring Cost Estimates 

- 

- 

- 

Other Operating Revenue 

6,056 

- 

- 

Other Operating Expense 

- 

- 

(3,175) 

Net Cash Provided by (Used for) Operating Activities 

149,423 

(2,846) 

(14,848) 


Cash Flows from Noncapital Financing Activities 

Transfers In from Other Funds 

57 

- 

- 

Transfers Out to Other Funds 

(365,099) 

- 

- 

Other Noncapital Financing Receipt Activities 

245,556 

6,000 

- 

Other Noncapital Financing Disbursement Activities 

(26,643) 

- 

- 

Net Cash Provided by (Used for) Noncapital 

Financing Activities 

(146,129) 

6,000 

- 


Cash Flows from Capital and Related Financing Activities 

Acquisition of Capital Assets 

(3,374) 

- 

- 

Payment of Principal and Interest on Bonds and Notes 

- 

- 

- 

Proceeds from Sale of Capital Assets 

3 

- 

- 

Net Cash Used for Capital and 

Related Financing Activities 

(3,371) 

- 

- 


Cash Flows from Investing Activities 

Proceeds from Sales or Maturities of Investments 

- 

- 

- 

Investment Income on Cash, Cash Equivalents, and Investments 

- 

- 

672 

Net Cash Provided by Investing Activities 

- 

- 

672 


Net Increase (Decrease) in Cash and 

Cash Equivalents 

(77) 

3,154 

(14,176) 

Cash and Cash Equivalents, July 1, as restated 

1,349 

20,245 

106,644 

Cash and Cash Equivalents, June 30 

$ 1,272 $ 

23,399 $ 

92,468 


Reconciliation of Cash and Cash Equivalents 

Ffer the Statement of Net Fbsition: 

Cash and Cash Equivalents 

$ 1,120 $ 

23,399 $ 

95,997 

Restricted Cash and Cash Equivalents 




Cash and Travel Advances 

200 

- 

- 

Less: 

Securities Lending Cash Equivalents 

(48) 

- 

(3,529) 

Cash and Cash Equivalents per the Statement of Cash Flows 

$ 1,272 $ 

23,399 $ 

92,468 


220 Commonwealth of Virginia 














































































Route 460 
Funding 
Corporation 
of Virginia 


Virginia 
Industries 
for the 
Blind 




Department 

Wireless 


eVA 

of 

E-911 

Consolidated 

Procurement 

Environmental 

Service 

Laboratory 

System 

Quality 

Board 


Virginia 

Museum 

of 

Fine Arts 


$ 

$ 

38,317 $ 

10,118 $ 

13,648 $ 

10,813 $ 

59,246 $ 

7,106 


- 

4,337 

- 

4,633 

- 

- 

- 




(848) 

(1,521) 


(11) 



- 

(32,041) 

(3,262) 

(4) 

(83) 

(13) 

(2,347) 


(414) 

(1,337) 

(851) 

(16,106) 

(883) 

(754) 

(629) 


- 

- 

- 

- 

- 

- 

- 


- 

(6,813) 

(3,251) 

(4,624) 

(8,945) 

(1,460) 

(3,077) 


- 

- 

- 

- 

- 

(43,044) 

- 










- 

(1,556) 

- 

- 

(669) 

- 

- 


(414) 

907 

1,906 

(3,974) 

233 

13,964 

1,053 


- 

- 

- 

- 

- 

- 

- 



(1,500) 

(3,117) 


(13,450) 

(522) 

- 

- 

- 

- 

- 

- 

- 

- 

(50) 

- 

- 

- 

- 

- 


- 

(50) 

(1,500) 

(3,117) 

- 

(13,450) 

(522) 


(5,574) 

(1,279) 

(606) 

- 

- 

- 

- 

(11,726) 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 


(17,300) 

(1,279) 

(606) 

- 

- 

- 

- 





(6,737) 

(422) 

(200) 

(7,091) 

233 

514 


531 


142,308 

8,705 

4,496 

14,333 

2,594 

15,426 


1,222 

$ 

135,571 $ 

8,283 $ 

4,296 $ 

7,242 $ 

2,827 $ 

15,940 

$ 

1,753 


$ 

113 

$ 

8,280 

$ 

4,296 

$ 

7,242 

$ 

2,827 

$ 

15,940 

$ 

1,747 


135,458 


- 


- 


- 


- 


- 




- 


3 


- 


- 


- 


- 


6 



- 


- 

- 

- 


- 


- 


- 

$ 

135,571 

$ 

8,283 $ 

4,296 $ 

7,242 

$ 

2,827 

$ 

15,940 

$ 

1,753 


Continued on next page 


Commonwealth of Virginia 221 
























































































































Combining Statement of Cash Flows - Nonmajor Enterprise Funds (Continued from previous page) 

For the Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 

Science 

Behavioral 



Museum 

Health 



of 

Local 



Virginia 

Funds 

Total 

Cash Flows from Operating Activities 




Receipts for Sales and Services 

$ 421 

$ 486 $ 

1,208,993 

Internal Activity-Receipts from Other Funds 

- 

- 

8,970 

Internal Activity-Payments to Other Funds 

- 

- 

(2,380) 

Payments to Suppliers for Goods and Services 

(190) 

(467) 

(488,266) 

Payments for Contractual Services 


- 

(69,973) 

Payments for Prizes, Claims, and Loss Control 

- 

- 

(339,087) 

Payments to Employees 

(157) 

- 

(130,372) 

Payments to Providers for Non-recurring Cost Estimates 

- 

- 

(43,044) 

Other Operating Revenue 



6,056 

Other Operating Expense 

(21) 

- 

(5,421) 

Net Cash Provided by (Used for) Operating Activities 

53 

19 

145,476 


Cash Flows from Noncapital Financing Activities 

Transfers In from Other Funds 

- 

- 

57 

Transfers Out to Other Funds 

(60) 

(16) 

(383,764) 

Other Noncapital Financing Receipt Activities 

- 

- 

251,556 

Other Noncapital Financing Disbursement Activities 

- 

- 

(26,693) 

Net Cash Provided by (Used for) Noncapital 

Financing Activities 

(60) 

(16) 

(158,844) 


Cash Flows from Capital and Related Financing Activities 


Acquisition of Capital Assets 

- 

- 

(10,833) 

Payment of Principal and Interest on Bonds and Notes 

- 

- 

(11,726) 

Proceeds from Sale of Capital Assets 

- 

- 

3 

Net Cash Used for Capital and 

Related Financing Activities 

- 

- 

(22,556) 


Cash Flows from Investing Activities 


Proceeds from Sales or Maturities of Investments 

- 

- 

10,285 

Investment Income on Cash, Cash Equivalents, and Investments 

- 

- 

1,364 

Net Cash Provided by Investing Activities 

- 

- 

11,649 


Net Increase (Decrease) in Cash and 


Cash Equivalents 


(7) 


3 


(24,275) 

Cash and Cash Equivalents, July 1, as restated 


212 


429 


317,963 

Cash and Cash Equivalents, June 30 

$ 

205 

$ 

432 

$ 

293,688 


Reconciliation of Cash and Cash Equivalents 

Per the Statement of Net Position: 

Cash and Cash Equivalents 

$ 

205 

$ 

432 

$ 

161,598 

Restricted Cash and Cash Equivalents 


- 


- 


135,458 

Cash and Travel Advances 


- 


- 


209 

Less: 

Securities Lending Cash Equivalents 


- 


- 


(3,577) 

Cash and Cash Equivalents per the Statement of Cash Flows 

$ 

205 

$ 

432 

$ 

293,688 


222 Commonwealth of Virginia 














































































Department Local 

of Alcoholic Choice 


Reconciliation of Operating Income 

Beverage 

Control 

Risk 

Management 


Health 

Care 

To Net Cash Provided by (Used for) 

Operating Activities: 

Operating Income (Loss) 

$ 150,694 

$ (1,740) 

$ 

(7,104) 

Adjustments to Reconcile Operating 

Income to Net Cash Provided by (Used for) 

Operating Activities: 

Depreciation 

2,664 

8 


- 

Miscellaneous Nonoperating Income 

2 

- 


- 

Other 

- 

- 


- 

Change in Assets, Deferred Outflows of Resources, Liabilities, and 

Deferred Inflow s of Resources 

(Increase) Decrease in Accounts Receivable 

(411) 

265 


(6,016) 

(Increase) Decrease in Due from Other Funds 

- 

- 


- 

(Increase) Decrease in Other Assets 

- 

- 


- 

(Increase) Decrease in Inventory 

(3,316) 

- 


- 

(Increase) Decrease in Prepaid Items 

1,365 

2 


- 

(Increase) Decrease in Deferred Outflows of Resources 

(2,444) 

(49) 


- 

Increase (Decrease) in Accounts Payable 

(5,233) 

(246) 


(539) 

Increase (Decrease) in Amounts Due to Other Governments 

- 

- 


- 

Increase (Decrease) in Due to Other Funds 

2,605 

19 


- 

Increase (Decrease) in Due to External Parties (Fiduciary Funds) 

62 

(7) 


- 

Increase (Decrease) in Unearned Revenue 

27 

(273) 


- 

Increase (Decrease) in Other Liabilities 

(15) 

- 


- 

Increase (Decrease) in Claims Payable: Due Within One Year 

- 

(1,467) 


(1,189) 

Increase (Decrease) in Claims Payable: Due in More Than One Year 

- 

596 


- 

Increase (Decrease) in Long-term Liabilities: Due Within One Year 

(44) 

(2) 


- 

Increase (Decrease) in Long-term Liabilities: Due in More Than One Year 

(8,054) 

(67) 


- 

Increase (Decrease) in Deferred Inflows of Resources 

11,521 

115 


- 

Net Cash Provided by (Used for) Operating Activities 

$ 149,423 

$ (2,846) 

$ 

(14,848) 


Continued on next page 


Commonwealth of Virginia 223 










































Combining Statement of Cash Flows - Nonmajor Enterprise Funds (Continued from previous page) 
For the Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 


Route 460 
Funding 
Corporation 


Virginia 
Industries 
for the 


Consolidated 


of Virginia _ Blind _ Laboratory 


Reconciliation of Operating Income 

To Net Cash Provided by (Used for) 

Operating Activities: 

Operating Income (Loss) 

$ 

(524) 

$ 

1,554 $ 

1,477 

Adjustments to Reconcile Operating 

Income to Net Cash Provided by (Used for) 

Operating Activities: 

Depreciation 


- 


428 

377 

Miscellaneous Nonoperating Income 


- 


11 

- 

Other 


- 


234 

- 

Change in Assets, Deferred Outflows of Resources, Liabilities, and 

Deferred Inflows of Resources 

(Increase) Decrease in Accounts Receivable 


- 


(958) 

20 

(Increase) Decrease in Due from Other Funds 


120,113 


(50) 

(104) 

(Increase) Decrease in Other Assets 


(120,113) 


- 

- 

(Increase) Decrease in Inventory 




(443) 

(24) 

(Increase) Decrease in Prepaid Items 


- 


(523) 

- 

(Increase) Decrease in Deferred Outflows of Resources 


- 


(80) 

(80) 

Increase (Decrease) in Accounts Payable 


110 


711 

157 

Increase (Decrease) in Amounts Due to Other Governments 


- 


- 

- 

Increase (Decrease) in Due to Other Funds 


- 


20 

(48) 

Increase (Decrease) in Due to External Forties (Fiduciary Funds) 


- 


15 

6 

Increase (Decrease) in Unearned Revenue 


- 


- 

(13) 

Increase (Decrease) in Other Liabilities 


- 


- 

- 

Increase (Decrease) in Claims Payable: Due Within One Year 


- 


- 

- 

Increase (Decrease) in Claims Payable: Due in More Than One Year 


- 


- 

- 

Increase (Decrease) in Long-term Liabilities: Due Within One Year 


- 


(18) 

13 

Increase (Decrease) in Long-term Liabilities: Due in More Than One Year 


- 


(531) 

(495) 

(Increase) Decrease in Deferred Inflows of Resources 


- 


537 

620 

Net Cash FTovided by (Used for) Operating Activities 

$ 

(414) 

$ 

907 $ 

1,906 


224 Commonwealth of Virginia 











































Department 

Wireless 

Virginia 

Science 

Behavioral 


eVA 

of 

E-911 

Museum 

Museum 

Health 


Procurement 

Environmental 

Service 

of 

of 

Local 


System 

Quality 

Board 

Fine Arts 

Virginia 

Funds 

Total 


$ (3,118) $ 359 $ 17,959 $ 854 $ 20 $ 19 $ 160,450 


30 - - - 7 - 3,514 

13 

(8,231) - - - (7,997) 



(1,132) 

- 

4,896 

34 

2 

- 

(3,300) 


(134) 

- 

- 

- 

(2) 

- 

119,823 


- 

- 

- 

- 

(69) 

- 

(120,182) 


- 

- 

- 

40 

- 

- 

(3,743) 


- 

- 

- 

- 

(1) 

- 

843 


(107) 

(595) 

(35) 

(33) 

(5) 


(3,428) 


78 

1 

(2,039) 

130 

86 

- 

(6,784) 


- 

- 

1,370 

- 

- 

- 

1,370 


106 

(251) 

9 

- 

3 

- 

2,463 


2 

8 

2 

3 

- 

- 

91 


- 

- 

- 

- 

- 

- 

(259) 


- 

- 

- 

(10) 

- 

- 

(25) 


- 

- 


- 

- 

- 

(2,656) 


- 

- 

- 

- 

- 

- 

596 


(27) 

1 

33 

- 

- 

- 

(44) 


(504) 

(633) 

(270) 

(207) 

(6) 


(10,767) 


832 

1,343 

270 

242 

18 


15,498 

$ 

(3,974) $ 

233 $ 

13,964 $ 

1,053 $ 

53 $ 

19 $ 

145,476 


Commonwealth of Virginia 225 
















































226 Commonwealth of Virginia 






Internal Service Funds 


Internal Service Funds account for the operations of state agencies that render services to other state agencies , institutions , or 
other governmental units of the Commonwealth on a cost-reimbursement basis. 


Virginia Information Technologies Agency accounts for 
the installation and maintenance of the state government's 
telephone system; the development, use and maintenance 
of the Commonwealth's data processing systems; and the 
development of automated systems. 

Enterprise Application Fund accounts for the development 
and operation of the Commonwealth’s Performance 
Budgeting and Cardinal System. Funding is derived from 
charges to agencies for the ongoing costs of the 
Commonwealth's enterprise applications, including recovery 
of the development and implementation costs initially funded 
through working capital advances. 

Virginia Correctional Enterprises accounts for the 
manufacturing activities of the Commonwealth’s correctional 
facilities. 

Health Care accounts for the health insurance programs 
provided to state employees and for retirees who are not yet 
eligible to participate in Medicare. 


Fleet Management accounts for the Commonwealth's motor 
vehicle pool. 

Property Management accounts for real estate services, 
non-routine facility maintenance, and the disposal of state- 
owned property. 

Risk Management accounts for the insurance programs 
provided to state agencies and institutions. 

General Services accounts for a variety of services, 
including the purchase of supplies, the sale of surplus 
property, water testing, graphic design and engineering. 

Payroll Service Bureau accounts for the payroll and leave 
accounting services provided to state agencies and 
institutions. 


Commonwealth of Virginia 227 







Combining Statement of Fund Net Position - Internal Service Funds 


June 30, 2015 
(Dollars in Thousands) 


Virginia 

Information 

Technologies 

Agency 


Enterprise 

Application 


Virginia 

Correctional 

Enterprises 


Assets and Deferred Outflows of Resources 


Current Assets: 

Cash and Cash Equivalents 

$ 61,149 

$ 

1,416 

$ 

4,298 

Investments 






Receivables, Net 

2,322 


- 


2,235 

Due From Other Funds 

18,817 


- 


1,011 

Due From External Parties (Fiduciary Funds) 

- 


- 


- 

Due From Component Units 






Inventory 

- 


- 


13,292 

Prepaid Items 

4,584 


- 



Other Assets 

9,079 


- 


1,981 

Total Current Assets 

95,951 


1,416 


22,817 


Noncurrent Assets: 

Nondepreciable Capital Assets 

725 


51,122 


229 

Depreciable Capital Assets, Net 

15,941 


8,370 


8,932 

Total Noncurrent Assets 

16,666 


59,492 


9,161 

Total Assets 

112,617 


60,908 


31,978 

Deferred Outflows of Resources 

1,952 


349 


963 

Total Assets and Deferred Outflow s of Resources 

114,569 


61,257 


32,941 


Liabilities and Deferred Inflows of Resources 

Current Liabilities: 

Accounts Payable 

53,273 


3,857 


909 

Amounts Due to Other Governments 

- 


- 


- 

Due to Other Funds 

115 


96 


256 

Due to External Parties (Fiduciary Funds) 

127 


14 


66 

Interfund Payable 

16,000 


1,473 



Unearned Revenue 

47,865 


- 


836 

Obligations Under Securities Lending Program 






Other Liabilities 

409 


- 


1 

Claims Payable Due Within One Year 

- 


- 



Long-term Liabilities Due w ithin One Year 

1,515 


144 


603 

Total Current Liabilities 

119,304 


5,584 


2,671 


Noncurrent Liabilities: 


Interfund Payable - 57,444 



228 Commonwealth of Virginia 

































































































Payroll 

Fleet Property Risk General Service 

Health Care Management Management Management Services Bureau _ Total 


$ 175,858 

$ 

3,104 

$ 

29,979 

$ 180,816 

$ 

5,065 

$ 

238 

$ 

461,923 

234 


- 


- 

- 


- 


- 


234 

2,439 


418 


144 

265 


1,170 


- 


8,993 

27,786 


1,603 


1,154 

1 


1,715 




52,087 

202 


- 


- 

- 


- 


- 


202 

19,340 


- 


- 

- 


- 


- 


19,340 

- 


32 


338 

- 


4,646 


- 


18,308 



- 


355 

625 


93 


142 


5,799 

- 


- 


- 

- 


1 


- 


11,061 

225,859 


5,157 


31,970 

181,707 


12,690 


380 


577,947 


- 

- 

164 

- 

150 

- 

52,390 

- 

37,171 

17,861 

85 

5,264 

88 

93,712 

- 

37,171 

18,025 

85 

5,414 

88 

146,102 

225,859 

42,328 

49,995 

181,792 

18,104 

468 

724,049 

- 

96 

1,000 

201 

590 

324 

5,475 

225,859 

42,424 

50,995 

181,993 

18,694 

792 

729,524 



19,621 

574 

948 

2,364 

1,045 

96 

82,687 


- 

- 

889 

- 

- 

- 

889 


- 

89 

752 

36 

651 

11 

2,006 


- 

6 

70 

8 

41 

13 

345 


- 

- 

419 

- 

632 

- 

18,524 


- 

- 

20,644 

46,648 

149 

- 

116,142 


6,699 






6,699 


- 

- 

291 

508 

8 

- 

1,217 


118,005 

- 

- 

83,231 

- 

- 

201,236 


- 

3,166 

4,175 

71 

382 

105 

10,161 


144,325 

3,835 

28,188 

132,866 

2,908 

225 

439,906 


2,239 - 397 - 60,080 



Commonwealth of Virginia 229 


























































































































































Combining Statement of Revenues, Expenses, and Changes in Fund Net Position - 
Internal Service Funds 


For the Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 

Operating Revenues 

Virginia 

Information 

Technologies 

Agency 

Enterprise 

Application 

Virginia 

Correctional 

Enterprises 

Charges for Sales and Services 

$ 341,947 

$ 

19,507 

$ 42,911 

Total Operating Revenues 

341,947 


19,507 

42,911 

Operating Expenses 

Cost of Sales and Services 

- 


- 

32,099 

FTizes and Claims 

- 


- 

-| 

Personal Services 

22,385 


1,153 

5,251 

Contractual Services 

307,961 


16,073 

2,263 

Supplies and Materials 

45 


1 

553 

Depreciation 

4,448 


1,297 

1,502 

Rent, Insurance, and Other Related Charges 

4,363 


207 

1,071 

Interest Expense 

- 


1 

-| 

Other 

- 


19 

- 

Total Operating Expenses 

339,202 


18,751 

42,739 

Operating Income (Loss) 

2,745 


756 

172 


Nonoperating Revenues (Expenses) 

Interest, Dividends, Rents, and Other Investment Income 

- 


- 

- 

Other 

- 


- 

(7) 

Total Nonoperating Revenues (Expenses) 

- 


- 

(7) 


Income (Loss) Before Transfers 

2,745 


756 

165 

Transfers In 

2,890 


- 

250 

Transfers Out 

(7,409) 


(80) 

(611) 

Change in Net Position 

(1,774) 


676 

(196) 

Total Net Position (Deficit), July 1, as restated 

(34,924) 


(5,370) 

13,517 

Total Net Position (Deficit), June 30 

$ (36,698) 

$ 

(4,694) 

$ 13,321 


230 Commonwealth of Virginia 


















































Fleet Property 

Health Care Management Management 

Payroll 

Risk General Service 

Management Services Bureau Total 

$ 1,336,601 $ 16,587 $ 104,799 

1,336,601 16,587 104,799 

$ 109,167 $ 40,556 $ 2,173 $ 2,014,248 

109,167 40,556 2,173 2,014,248 

26,584 - 58,683 

1,215,279 

99,219 - - 1,314,498 1 

1,074 11,671 

1,836 7,127 2,281 52,778 

64,007 3,349 11,535 

10,764 3,472 46 419,470 

3,738 3,367 

7 1,476 12 9,199 

7,428 1,712 

13 813 4 17,217 

955 66,208 

2,587 1,775 141 77,307 

7 

8 | 

10,180 36 2,002 

1,289,466 16,580 96,502 

47,135 7 8,297 

7,737 125 3 20,102 

122,163 41,372 2,487 1,969,262 

(12,996) (816) (314) 44,986 

1,155 

113 - 1,268 

(15) 643 (2,490) 

1,140 643 (2,490) 

17 (30) - (1,882) 

17 83 - (614) 

48,275 650 5,807 

(12,979) (733) (314) 44,372 1 

1,764 - 1 

(1,730) (188) 

50,039 (1,080) 5,620 

31,495 23,185 (31,415) 

$ 81,534 $ 22,105 $ (25,795) 

388 - 5,293 

(508) (664) - (11,190) 

(13,487) (1,009) (314) 38,475 

(507,899) 6,723 (1,860) (506,548) 

$ (521,386) $ 5,714 $ (2,174) $ (468,073) 


Commonwealth of Virginia 231 




































































































Combining Statement of Cash Flows - Internal Service Funds 


For the Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 


Virginia 

Information 

Technologies 

Agency 


Enterprise 

Application 


Virginia 

Correctional 

Enterprises 


Cash Flows from Operating Activities 


Receipts for Sales and Services 

$ 14,357 

$ 957 $ 

15,475 

Internal Activity-Receipts from Other Funds 

326,532 

18,549 

26,171 

Internal Activity-Payments to Other Funds 

(2,606) 

- 

(956) 

Payments to Suppliers for Goods and Services 

(4,481) 

(1) 

(33,281) 

Payments for Contractual Services 

(281,127) 

(16,605) 

(2,259) 

Payments for Prizes, Claims, and Loss Control 

- 

- 

- 

Payments to Employees 

(22,201) 

(1,110) 

(5,314) 

Payments for Interest 

- 

(1) 

- 

Other Operating Expense 

- 

(226) 

- 

Net Cash Provided by (Used for) Operating Activities 

30,474 

1,563 

(164) 


Cash Flows from Noncapital Financing Activities 


Transfers In from Other Funds 

2,890 

- 

250 

Transfers Out to Other Funds 

(7,409) 

- 

(611) 

Other Noncapital Financing Receipt Activities 




Other Noncapital Financing Disbursement Activities 

- 

(1,473) 

- 

Net Cash FTovided by (Used for) Noncapital Financing Activities 

(4,519) 

(1,473) 

(361) 


Cash Flows from Capital and Related Financing Activities 


Acquisition of Capital Assets 

(1,424) 

- 

(99) 

Payment of Principal and Interest on Bonds and Notes 



(593) 

Proceeds from Sale of Capital Assets 

- 

- 

2 

Other Capital and Related Financing Disbursement Activities 

- 

- 

- 

Net Cash Used for Capital and Related 

Financing Activities 

(1,424) 

- 

(690) 


Cash Flows from Investing Activities 


Investment Income on Cash, Cash Equivalents, and Investments 


- 


- 


- 

Net Cash Provided by Investing Activities 


- 


- 


- 


Net Increase (Decrease) in Cash and Cash Equivalents 


24,531 


90 


(1,215) 

Cash and Cash Equivalents, July 1 


36,618 


1,326 


5,515 

Cash and Cash Equivalents, June 30 

$ 

61,149 

$ 

1,416 

$ 

4,300 


Reconciliation of Cash and Cash Equivalents 

Fter the Statement of Net FYsition: 

Cash and Cash Equivalents 

$ 

61,149 

$ 

1,416 

$ 

4,298 

Cash and Travel Advances 


- 


- 


2 

Less: 

Securities Lending Cash Equivalents 


- 


- 


- 

Cash and Cash Equivalents per the Statement of Cash Flows 

$ 

61,149 

$ 

1,416 

$ 

4,300 


232 Commonwealth of Virginia 














































































Payroll 



Fleet 

Property 

Risk 

General 

Se rvice 


Health Care 

Management 

Management 

Management 

Services 

Bureau 

Total 


$ 667,247 $ 

1,784 

$ 

3,674 

$ 

40,152 

$ 10,860 

$ 8 

$ 754,514 

666,614 

15,174 


99,848 


57,928 

29,552 

2,165 

1,242,533 

- 

(748) 


(3,416) 


- 

(2,794) 

- 

(10,520) 

- 

(4,695) 


(68,916) 


(7) 

(28,200) 

(12) 

(139,593) 

(63,237) 

(3,257) 


(11,798) 


(10,675) 

(3,201) 

(46) 

(392,205) 

(1,222,455) 

- 


- 


(72,099) 

- 

- 

(1,294,554) 


(1,120) 


(11,887) 


(1,775) 

(7,197) 

(2,194) 

(52,798) 

- 

- 


(7) 


- 

- 

- 

(8) 

(10,180) 

(6) 


- 


(10,576) 

- 

(149) 

(21,137) 

37,989 

7,132 


7,498 


2,948 

(980) 

(228) 

86,232 



1,764 

- 

1 

- 

388 

5,293 1 

- 

(1,730) 

(188) 

(508) 

(664) 

(11,110) 



23 

17 

113 

153 1 

- 

- 

(427) 

- 

- 

(1,900) 

1,764 

(1,730) 

(591) 

(491) 

(163) 

(7,564) 


(2,559) (365) - (91) - (4,538) 

(6,106) (7,682) - - - (14,381) 

1,500 - ... 1,502 

_- _- _- _ (632) _- _ (632) 


(7,165) _ (8,047) _- _ (723) _- _ (18,049) 


1,140 


- 

- 


- 


- 


- 


1,140 

1,140 


- 

- 


- 


- 


- 


1,140 


40,893 


(1,763) 

(1,140) 


2,457 


(1,866) 


(228) 


61,759 

128,500 


4,867 

31,119 


178,359 


6,932 


466 


393,702 

$ 169,393 

$ 

3,104 

$ 29,979 

$ 

180,816 

$ 

5,066 

$ 

238 

$ 

455,461 


$ 

175,858 

$ 

3,104 

$ 

29,979 

$ 

180,816 

$ 

5,065 

$ 

238 

$ 

461,923 


- 


- 


- 


- 


1 


- 


3 



(6,465) 


- 


- 


- 


- 


- 


(6,465) 

$ 

169,393 

$ 

3,104 

$ 

29,979 

$ 

180,816 

$ 

5,066 

$ 

238 

$ 

455,461 


Continued on next page 


Commonwealth of Virginia 233 








































































































































Combining Statement of Cash Flows - Internal Service Funds (Continued from previous page) 


For the Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 


Virginia 

Information 

Technologies 

Agency 


Enterprise 

Application 


Virginia 

Correctional 

Enterprises 


Reconciliation of Operating Income 


To Net Cash Provided by (Used for) 

Operating Activities: 

Operating Income (Loss) 

$ 

2,745 

$ 

756 

$ 

172 

Adjustments to Reconcile Operating 

Income to Net Cash Provided by (Used for) 

Operating Activities: 

Depreciation 


4,448 


1,297 


1,502 

Miscellaneous Nonoperating Income 


- 


- 


30 

Other 


- 


(80) 



Change in Assets, Deferred Outflows of Resources, Liabilities, and 

Deferred Inflow s of Resources 

(Increase) Decrease in Accounts Receivable 


(37) 


- 


556 

(Increase) Decrease in Due from Other Funds 


4,900 


- 


460 | 

(Increase) Decrease in Due from External Parties (Fiduciary Funds) 


- 


- 


- 

(Increase) Decrease in Due from Component Units 


- 


- 


- 

(Increase) Decrease in Other Assets 


(5,969) 


- 


(1,979) 

(Increase) Decrease in Inventory 


- 


- 


(325) 

(Increase) Decrease in Prepaid Items 


(783) 


- 


31 

(Increase) Decrease in Deferred Outflows of Resources 


(533) 


(221) 


(253)| 

Increase (Decrease) in Accounts Payable 


25,527 


(461) 


(115) 

Increase (Decrease) in Amounts Due to Other Governments 


(2,285) 


- 


(359) 

Increase (Decrease) in Due to Other Funds 


11 


88 


12 

Increase (Decrease) in Due to External Parties (Fiduciary Funds) 


13 


3 


8 1 

Increase (Decrease) in Unearned Revenue 


1,607 


- 


40 

Increase (Decrease) in Other Liabilities 


409 


- 


- 

Increase (Decrease) in Claims Payable: Due Within One Year 


- 


- 


- 

Increase (Decrease) in Claims Payable: Due in More Than One Year 







Increase (Decrease) in Long-term Liabilities: Due Within One Year 


919 


3 


(5) 

Increase (Decrease) in Long-term Liabilities: Due in More Than One Year 


(4,629) 


(195) 


(2,381) 

Increase (Decrease) in Deferred Inflows of Resources 


4,131 


373 


2,442 

Net Cash Provided by (Used for) Operating Activities 

$ 

30,474 

$ 

1,563 

$ 

(164) 


Noncash Investing, Capital, and Financing Activities: 

The follow ing transactions occurred prior to the Statement of Net Position date: 

Capital Leases Used to Finance Capital Assets 

$ 

- 

$ 

- 

$ 

- 

Installment Purchases Used to Finance Capital Assets 


- 


- 


- 

Capital Asset Addition Included in Accounts Payable 


127 


1,659 


- 

Total Noncash, Investing, Capital, and Financing Activities 

$ 

127 

$ 

1,659 

$ 

- 


234 Commonwealth of Virginia 



































































Payroll 



Fleet 

Property 

Risk 

General 

Service 


Health Care 

Management 

Management 

Management 

Services 

Bureau 

Total 


$ 47,135 $ 7 $ 8,297 $ (12,996) $ (816) $ (314) $ 44,986 



- 

7,428 

1,712 

13 

813 

4 

17,217 


- 

- 

- 

- 

- 

- 

30 


^B 

^B 

^B 

^B 


H 

(80) 


(256) 

37 


122 


(4) 


84 


- 


502 

(743) 

462 


(674) 


(1) 


(340) 


- 


4,064 

(8) 

- 


- 


- 


- 


- 


(8) 

(1,733) 

- 


- 


- 


- 


- 


(1,733) 

- 

- 


- 


- 


1 


- 


(7,947) 

- 

(2) 


24 


- 


(859) 


- 


(1,162) 

- 

- 


(1) 


(187) 


186 


(6) 


(760) 

- 

(26) 


(273) 


(99) 


(161) 


(205) 


(1,771) 

479 

(736) 


(749) 


294 


(194) 


4 


24,049 

- 

- 


(89) 


- 


- 


- 


(2,733) 

- 

3 


86 


32 


81 


1 


314 

- 

- 


12 


(8) 


7 


3 


38 1 

- 

(39) 


(1,104) 


(11,081) 


127 


- 


(10,450) 

- 

- 


4 


- 


(48) 


- 


365 

(6,885) 

- 


- 


1,013 


- 


- 


(5,872) 

^B 

^B 


^B 


25,815 


^B 


^B 


25,815 

- 

(33) 


(33) 


11 


(6) 


i 


857 

- 

(172) 


(1,953) 


(164) 


(1,105) 


(63) 


(10,662) 

- 

203 


2,117 


310 


1,250 


347 


11,173 

$ 37,989 $ 

7,132 

$ 

7,498 

$ 

2,948 

$ 

(980) 

$ 

(228) 

$ 

86,232 


$ 

- 

$ 

- 

$ 

9,067 

$ 

- 

$ 

- 

$ 

- 

$ 

9,067 


- 


8,666 


- 


- 


- 


- 


8,666 


- 


- 


- 


- 


- 


- 


1,786 

$ 

- 

$ 

8,666 

$ 

9,067 

$ 

- 

$ 

- 

$ 

- 

$ 

19,519 


Commonwealth of Virginia 235 
















































































Fiduciary Funds 


Private Purpose Trust Funds 

Private Purpose Trust Funds are trust arrangements that benefit individuals, private organizations , or other governments. 


Unclaimed Property accounts for unclaimed and escheat 
property that the state holds for its rightful owner. 

Virginia529 inVEST accounts for program activities offered 
by the Virginia College Savings Plan. The program is a 
defined contribution college savings program in which 
participants can save for qualified higher education 
expenses by making contributions and investments into 
portfolios of their choice. 

Loan Servicing Reserve accounts for funds that are used 
to service loan activities for individual loans in order to meet 
the provisions of the Declarations of the dissolved Virginia 
Education Loan Authority. 

Edvantage Reserve accounts for funds that are used to 
service loan activities for individual loans in order to meet the 
provisions of the dissolved Student Education Assistance 
Authority. 


Virginia Revolving Farm Loan Program accounts for trust 
funds that are used to provide loans to individual farmers for 
rural rehabilitation purposes. 

Gas and Oil Board Escrow Account accounts for the funds 
held in escrow awaiting disbursement to the validated owner 
of property containing gas and oil interest. 

Miscellaneous Trust account for perpetual trusts created 
through donations to the state. Earnings are used for the 
benefit of donor-specified local entities. 


Pension and Other Employee Benefit Trust Funds 

Pension and Other Employee Benefit Trust Funds reflect the activities of the retirement systems and postemployment benefits 
administered by the Virginia Retirement System (VRS) or the Department of Human Resource Management. 


The Virginia Retirement System provides retirement 

benefits to Commonwealth employees, teachers, political 
subdivision employees, and other qualifying employees. 

The State Police Officers’ Retirement System provides 
retirement benefits to Virginia state police officers. 

The Judicial Retirement System provides retirement 

benefits to the Commonwealth's judiciary. 

The Virginia Law Officers’ Retirement System provides 
retirement benefits to correctional officers, capital police 
officers, university police officers, and game wardens. 

Political Appointees provides optional retirement benefits 
to selected officials and administrative staff. 

The Public School Superintendents’ Plan provides 
retirement benefits to superintendents in the public school 
system. 

The Virginia Supplemental Retirement Plan provides 
extra benefits to turn-around specialists in the public school 
system. 


Other Postemployment Retiree Health Insurance Credit 
Fund accounts for the health insurance credits provided by 
the Commonwealth which offset a portion of the retirees’ 
monthly insurance premiums. 

Other Employment Group Life Fund provides life 
insurance coverage to members of the retirement systems. 

Other Postemployment Disability Insurance Trust Fund 

provides income protection to Commonwealth employees for 
absences caused by sickness or disability. 

Other Employment Volunteer Firefighters' and Rescue 
Squad Workers' Fund provides optional retirement benefits 
to volunteer firefighters and rescue squad workers. 

Other Postemployment Line of Duty Death and Disability 
Fund provides death and health benefits to beneficiaries of 
certain law enforcement and rescue personnel disabled or 
killed in the line of duty. 

Virginia Local Disability Program provides long-term 
disability benefits to local government employees. 


236 Commonwealth of Virginia 








Investment Trust Fund 


Investment Trust Fund reflects the external portion of the local government investment pool sponsored by the Commonwealth. 

Local Government Investment Pool (LGIP) helps local governmental entities maximize their rate of return by commingling their 
resources for investment purposes. 


Agency Funds 

Agency Funds report those funds for which the Commonwealth acts solely in a custodial capacity. 


Funds for the Collection of Taxes and Fees account for 
taxes and fees collected by the Commonwealth to be 
distributed to localities or other states. 

Employee Benefits Fund accounts for undistributed 
withholdings for employee benefits. 

Contractor Deposits Fund accounts for reimbursable 
deposits, including both cash and securities, from mining 
companies, road construction companies, motor fuel 
retailers and localities to ensure performance meets 
regulatory standards. 

Deposits of Insurance Carriers Fund accounts for security 
deposits of insurance carriers as protection to the policy 
holders of the Commonwealth. 

Inmate and Ward Fund accounts for the savings of inmates 
and wards of the Departments of Corrections and Juvenile 
Justice. 

Child Support Collection Fund accounts for court-ordered 
child support payments that flow through the Department of 
Social Services. 

Behavioral Health Patient Fund accounts for the savings of 
patients in the Commonwealth's behavioral health facilities. 

Behavioral Health Non-patient Fund accounts for the 
savings of non-patients in the Commonwealth's behavioral 
health facilities. 

Comptroller's Debt Setoff Fund accounts for monies held 
in a suspense status while research is conducted to 
determine the party entitled to the funds. 

Unclaimed Property of Other States Fund accounts for 
unclaimed property that is due to other states. 

Legal Settlement Fund accounts for receipts from court 
judgments that are deposited and subsequently distributed 
to the appropriate injured parties. 


Consumer Services Fund accounts for deposits made by 
businesses that will provide assistance to individuals 
suffering losses associated with these businesses and will 
be returned after dispute resolution. The Milk Commission, 
which accounts for deposits from milk producers that will be 
distributed to individual farmers to offset delivery expenses 
and losses incurred, is reported as part of this fund. 

State Asset Forfeiture Fund accounts for seized assets 
that are deposited and subsequently distributed to the 
appropriate parties pursuant to court orders. 

Virginia School for the Deaf and the Blind Fund accounts 
for student funds used to establish new activities for 
students. 

Woodrow Wilson Rehabilitation Center Fund accounts for 
student funds held by the center. 

Third Party Administrator Fund accounts for funds held in 
custody for assets of the Virginia Railway Express and the 
van pool insurance program. 

Department of Environmental Quality Fund accounts for 
deposits from the EPA as a result of a legal settlement which 
will be distributed to localities to retro-fit school buses. 

Virginia Veterans’ Care Center Resident Fund accounts 
for the savings of residents of the Virginia Veterans Care 
Center. 

Virginia Individual Development Account Trust Fund 

accounts for funds used to benefit low income individuals 
and to assist them in purchasing affordable housing. 

E-Payables Fund accounts for payments to vendors which 
are held in a suspense status until the electronic payment is 
processed. 


Commonwealth of Virginia 237 








Combining Statement of Fiduciary Net Position - Private Purpose Trust Funds 


June 30, 2015 
(Dollars in Thousands) 


Assets and Deferred Outflows of Resources 

Unclaimed 

Property 

Virginia529 

inVEST 


Loan 

Servicing 

Reserve 

Cash and Cash Equivalents 

$ 13,737 

$ 36,434 

$ 

189 

Investments: 

Bonds and Mortgage Securities 

93 

88,741 


- 

Stocks 

274,852 

68,122 


- 

Index and Pooled Funds 

3,206 

1,589,110 



Real Estate 

2,246 

- 


- 

Mutual and Money Market Funds 

209,118 

634,469 



Other 

1,332 

659,747 


- 

Total Investments 

490,847 

3,040,189 


- 

Receivables, Net: 

Accounts 

- 

2 



Interest and Dividends 

- 

2,174 


- 

Total Receivables 

- 

2,176 


- 

Prepaid Items 

236 

- 


- 

Furniture and Equipment 

618 

- 


- 

Total Assets 

505,438 

3,078,799 


189 

Deferred Outflows of Resources 

442 

- 


- 

Total Assets and Deferred Outflows of Resources 

505,880 

3,078,799 


189 


Liabilities and Deferred Inflows of Resources 

Accounts Payable and Accrued Expenses 

374 

2,487 



Due to Other Funds 

20 

- 


- 

Due to Internal Parties (Governmental Funds and Business-type Activities) 

26 

- 


- 

Obligations Under Securities Lending Program 

- 

- 


- 

Other Liabilities 

- 

3,786 


- 

Compensated Absences Payable 

276 

- 


- 

Net Pension Liability 

3,223 

- 


- 

Other Rostemployment Benefits (OPEB) Liability 

578 

- 


- 

Total Liabilities 

4,497 

6,273 


- 

Deferred Inflows of Resources 

575 

- 


- 

Total Liabilities and Deferred Inflows of Resources 

5,072 

6,273 


- 


Net Position Held in Trust for Participants and Other Purposes 

$ 500,808 

$ 3,072,526 

$ 

189 


238 Commonwealth of Virginia 









































































Virginia Gas and 

Revolving Oil Board 

Edvantage Farm Loan Escrow Miscellaneous 

Reserve Program Account _ Trust _ _ Total 



Commonwealth of Virginia 239 









































































































Combining Statement of Changes in Fiduciary Net Position - Private Purpose Trust Funds 


For the Fiscal Year June 30, 2015 
(Dollars in Thousands) 


Loan 

Unclaimed Virginia529 Servicing 

Property inVEST Reserve 


Additions: 



June 30 $ 500,808 $ 3,072,526 $_189 


240 Commonwealth of Virginia 

















































Virginia 

Gas and 




Revolving 

Oil Board 



Edvantage 

Farm Loan 

Escrow 

Miscellaneous 


Reserve 

Program 

Account 

Trust 

Total 



$_ 246 $_ 4,660 $ 27,996 $_66 $ 3,606,491 


Commonwealth of Virginia 241 









































































Combining Statement of Fiduciary Net Position - Pension and Other Employee Benefit Trust Funds 


June 30, 2015 
(Dollars in Thousands) 


State 

Police 



Virginia 

Officers' 

Judicial 


Retirement 

Retirement 

Retirement 


System 

System 

System 

Assets and Deferred Outflows of Resources 




Cash and Cash Equivalents 

$ 279,363 

$ 3,209 

$ 1,998 

Investments: 

Bonds and Mortgage Securities 

19,721,956 

226,595 

140,983 

Stocks 

22,236,954 

255,491 

158,961 

Fixed Income Commingled Funds 

699,430 

8,036 

5,001 

Index and Fboled Funds 

6,551,440 

75,273 

46,833 

Real Estate 

6,556,323 

75,328 

46,868 

Private Equity 

7,655,340 

87,956 

54,724 

Short-term Investments 

270,740 

3,111 

1,935 

Hybrid Defined Contribution Investments 

23,144 

- 

202 

Other 

3,171,558 

36,440 

22,672 

Total Investments 

66,886,885 

768,230 

478,179 

Receivables, Net: 

Contributions 

209,214 

1,274 

1,326 

Interest and Dividends 

210,440 

2,418 

1,504 

Security Transactions 

1,362,165 

15,651 

9,737 

Other Receivables 

169,460 

1,908 

1,183 

Total Receivables 

1,951,279 

21,251 

13,750 

Due from Other Funds 

18 

- 

- 

Due from Internal Parties (Governmental Funds and Business-type Activities) 

22,164 

134 

139 

Due from Component Units 

22,727 

- 

- 

Furniture and Equipment 

29,889 

- 

- 

Total Assets 

69,192,325 

792,824 

494,066 


Deferred Outflows of Resources 

- 

- 

- 

Total Assets and Deferred Outflow s of Resources 

69,192,325 

792,824 

494,066 


Liabilities and Deferred Inflows of Resources 

Accounts Payable and Accrued Expenses 

26,645 

280 

174 

Due to Internal Parties (Governmental Funds and Business-type Activities) 

176 

- 

- 

Obligations Under Securities Lending Program 

3,172,253 

36,448 

22,677 

Other Liabilities 

288,466 

3,299 

2,053 

Retirement Benefits Payable 

308,974 

4,380 

3,317 

Refunds Payable 

3,781 

- 

- 

Compensated Absences Payable 

2,819 

- 

- 

Insurance Premiums and Claims Payable 

- 

- 

- 

Payable for Security Transactions 

1,339,280 

15,065 

9,373 


Total Liabilities 5,142,394 _ 59,472 37,594 


Deferred Inflows of Resources 

- 


- 

- 

Total Liabilities and Deferred Inflow s of Resources 

5,142,394 


59,472 

37,594 


Net Position Held in Trust for Pension/Other Employment Benefits 

$ 64,049,931 

$ 

733,352 

$ 456,472 


242 Commonwealth of Virginia 

































































Virginia 

Law 

Officers' 

Retirement 

System 

Political 

Appointees 

Public School 
Superintendents 

Virginia 

Supplemental 

Retirement 

Plan 

Other 

Postemployment 
Retiree Health 

Insurance 

Credit 

Other 

Employment 

Group 

Life 

Other 

Postemployment 

Disability 

Insurance 

Trust Fund 


$ 5,199 

$ 

$ 

$ 

$ 749 

$ 5,262 

$ 1,785 


367,028 

5,071 

332 

12 

52,926 

371,455 

126,055 

413,832 

6,591 

47 

95 

59,675 

418,824 

142,129 

13,016 

- 

- 

- 

1,877 

13,173 

4,470 

121,923 

- 

- 

- 

17,581 

123,393 

41,874 

122,014 




17,594 

123,485 

41,905 

142,467 

- 

- 

- 

20,544 

144,185 

48,930 

5,038 

- 

- 

- 

727 

5,099 

1,731 

- 

- 

- 

- 

- 

- 

- 

59,023 

- 

- 

- 

8,511 

59,735 

20,271 

1,244,341 

11,662 

379 

107 

179,435 

1,259,349 

427,365 


4,827 

- 

- 

- 

9,873 

15,667 

551 

3,916 

- 

- 

- 

565 

3,964 

1,345 

25,350 

- 

- 

- 

3,656 

25,656 

8,706 

3,080 

- 

- 

- 

449 

3,118 

8,562 

37,173 

- 

- 

- 

14,543 

48,405 

19,164 

- 

- 

- 

- 

1 

1 


509 

- 

- 

- 

1,044 

1,656 

59 

1,072 

- 

- 

- 

2,621 

2,333 

599 

- 

- 

- 

- 

- 

- 

- 

1,288,294 

11,662 

379 

107 

198,393 

1,317,006 

448,972 


- 

- 

- 

- 

- 

- 

- 

1,288,294 

11,662 

379 

107 

198,393 

1,317,006 

448,972 




454 


- 


- 


- 


12,239 


459 


3,962 


- 


- 


- 


- 


- 


- 


- 


59,036 


- 


- 


- 


8,513 


59,748 


20,276 


5,343 


- 


- 


- 


771 


5,407 


1,835 


7,502 


- 


- 


- 


- 


- 




204 


- 


- 


- 


157 


6 


- 
















- 


- 


- 


- 


- 


64,072 


- 


24,402 


- 


- 


- 


3,519 


24,697 


8,381 


96,941 


- 


- 


- 


25,199 


154,389 


34,454 



- 


- 


- 


- 


- 


- 


- 


96,941 


- 


- 


- 


25,199 


154,389 


34,454 


$ 

1,191,353 

$ 

11,662 

$ 

379 

$ 

107 

$ 

173,194 

$ 

1,162,617 

$ 

414,518 


Continued on next page 


Commonwealth of Virginia 243 




































































































































Combining Statement of Fiduciary Net Position - Pension and Other Employee Benefit Trust Funds 

(Continued from previous page) 

June 30, 2015 
(Dollars in Thousands) 


Other 

Employment Other 


Assets and Deferred Outflows of Resources 

Volunteer 
Firefighters 
and Rescue 
Squad Workers 

Postemployment 
Line of Duty 

Death and 
Disability 

Virginia Local 
Disability 
Program 

Cash and Cash Equivalents 

$ 

$ 2 

$ 

Investments: 

Bonds and Mortgage Securities 

52 

187 


Stocks 

3,062 

213 

- 

Fixed Income Commingled Funds 


7 


Index and Pooled Funds 

- 

63 

- 

Real Estate 

- 

63 

- 

Private Equity 

- 

73 

- 

Short-term Investments 


3 

- 

Hybrid Defined Contribution Investments 

- 

- 

- 

Other 

- 

30 

- 

Total Investments 

3,114 

639 

- 

Receivables, Net: 

Contributions 

- 

- 

591 

Interest and Dividends 


2 


Security Transactions 

- 

13 

- 

Other Receivables 

- 

305 

4 

Total Receivables 

- 

320 

595 

Due from Other Funds 

- 

- 

- 

Due from Internal Parties (Governmental Funds and Business-type Activities) 

- 

- 

62 

Due from Component Units 


- 

- 

Furniture and Equipment 

- 

- 

- 

Total Assets 

3,114 

961 

657 


Deferred Outflows of Resources 

- 

- 

- 

Total Assets and Deferred Outflows of Resources 

3,114 

961 

657 


Liabilities and Deferred inflows of Resources 


Accounts Payable and Accrued Expenses 

- 

- 

- 

Due to Internal Parties (Governmental Funds and Business-type Activities) 

- 

- 

- 

Obligations Under Securities Lending Program 


30 


Other Liabilities 

- 

3 

657 

Retirement Benefits Payable 

- 

- 

- 

Refunds Payable 

- 

- 

- 

Compensated Absences Payable 


- 


Insurance Premiums and Claims Payable 

- 

- 

- 

Payable for Security Transactions 

- 

13 


Total Liabilities 

- 

46 

657 


Deferred Inflows of Resources 

- 

- 

- 

Total Liabilities and Deferred Inflow s of Resources 

- 

46 

657 


Net Position Held in Trust for Pension/Other Employment Benefits 


$ 3,114 $ 915 $ 


244 Commonwealth of Virginia 






































































Total 


$ 297,567 


21,012,652 

23,695,874 

745,010 

6,978,380 

6,983,580 

8,154,219 

288,384 

23,346 



243,323 


224,154 

1,450,934 

188,069 

2,106,480 

20 

25,767 

29,352 

29,889 

73,748,760 


73,748,760 


44,213 

176 

3,378,981 

307,834 

324,173 

4,148 

2,819 

64,072 

1,424,730 

5,551,146 


5,551,146 


$ 68,197,614 


Commonwealth of Virginia 245 









































Combining Statement of Changes in Fiduciary Net Position - Pension and Other Employee Benefit Trust Funds 


For the Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 


State 

Police 

Virginia Officers' Judicial 

Retirement Retirement Retirement 


Additions: 

System 

System 

System 

Investment Income: 

Interest, Dividends, and Other Investment Income 

$ 3,193,502 

$ 36,826 

$ 22,739 

Total Investment Income 

3,193,502 

36,826 

22,739 

Less Investment Expenses 

377,722 

4,360 

2,690 

Net Investment Income 

2,815,780 

32,466 

20,049 

Contributions: 

Member 

809,361 

5,680 

3,174 

Employer 

2,292,075 

28,427 

31,560 

Total Contributions 

3,101,436 

34,107 

34,734 

Other Revenue 

1,723 

- 

- 

Total Additions 

5,918,939 

66,573 

54,783 

Deductions: 

Retirement Benefits 

3,935,656 

53,338 

40,205 

Refunds to Former Members 

100,993 

375 

- 

Retiree Health Insurance Credits 

- 

- 


Insurance Premiums and Claims 

- 

- 

- 

Administrative Expenses 

20,055 

288 

172 

Other Expenses 

2,323 

27 

17 

Long-term Disability Benefits 

- 

- 


Total Deductions 

4,059,027 

54,028 

40,394 

Transfers: 

Transfers In 

- 

- 

- 

Transfers Out 

- 

- 


Total Transfers 

- 

- 

- 

Net Increase 

1,859,912 

12,545 

14,389 


Net Position Held in Trust for Pension/Other Employment Benefits 


July 1 


62,190,019 


720,807 

442,083 

June 30 

$ 

64,049,931 

$ 

733,352 

$ 456,472 


246 Commonwealth of Virginia 






















































Virginia 




Other 


Other 

Law 



Virginia 

Postemployment 

Other 

Postemployment 

Officers' 



Supplemental 

Retiree Health 

Employment 

Disability 

Retirement 

Political 

Public School 

Retirement 

Insurance 

Group 

Insurance 

System 

Appointees 

Superintendents 

Plan 

Credit 

Life 

Trust Fund 



$ 59,316 

$ 

413 

$ 

9 

$ 

6 

$ 

7,684 

$ 

59,084 

$ 

20,794 

59,316 


413 


9 


6 


7,684 


59,084 


20,794 

7,004 


- 


- 


- 


913 


6,909 


2,457 

52,312 


413 


9 


6 


6,771 


52,175 


18,337 


17,081 


1,265 


80 


- 


- 


124,374 


- 

62,084 


- 


- 


- 


144,834 


84,089 


23,674 

79,165 


1,265 


80 


- 


144,834 


208,463 


23,674 

- 


- 


- 


- 


- 


- 


342 

131,477 


1,678 


89 


6 


151,605 


260,638 


42,353 


84,990 

1,020 

- 

- 

- 

- 


4,797 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

147,989 

- 


- 

- 

- 

- 

- 

175,760 

- 

487 

10 

- 

- 

177 

- 

387 

44 

- 

- 

- 

5 

1,288 

15 

- 

- 

- 

- 

- 

- 

37,086 

90,318 

1,030 

- 

- 

148,171 

177,048 

37,488 


- 

- 

- 

- 

- 

- 

10 


_- _- _- _- _-_ ___ _ 1 £ 

41,159 648 89 6 3,434 83,590 4,875 



1,150,194 


11,014 


290 


101 


169,760 


1,079,027 


409,643 

$ 1,191,353 

$ 

11,662 

$ 

379 

$ 

107 

$ 

173,194 

$ 

1,162,617 

$ 

414,518 


Continued on next page 


Commonwealth of Virginia 247 
























































































































Combining Statement of Changes in Fiduciary Net Position - Pension and Other Employee Benefit Trust Funds 

(Continued from previous page) 

For the Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 


Other 

Employment 


Other 


Volunteer Postemployment 

Firefighters Line of Duty Virginia Local 

and Rescue Death and Disability 

Squad Workers _ Disability _ _ Program 


Additions: 


Investment Income: 

Interest, Dividends, and Other Investment Income 

$ 134 

$ 

213 $ 

(2) 

Total Investment Income 

134 


213 

(2) 

Less Investment Expenses 

- 


34 

- 

Net Investment Income 

134 


179 

(2) 

Contributions: 

Member 

27 


- 

- 

Employer 

88 


9,121 

865 

Total Contributions 

115 


9,121 

865 

Other Revenue 

- 


89 

10 

Total Additions 

249 


9,389 

873 

Deductions: 

Retirement Benefits 

- 


- 

- 

Refunds to Former Members 

71 


- 

- 

Retiree Health Insurance Credits 

- 


- 

- 

Insurance Premiums and Claims 

- 


8,213 

- 

Administrative Expenses 

- 


72 

213 

Other Expenses 

- 


189 

5 

Long-term Disability Benefits 

- 


- 

645 

Total Deductions 

71 


8,474 

863 

Transfers: 

Transfers In 

- 


- 

- 

Transfers Out 

- 


- 

(10) 

Total Transfers 

- 


- 

(10) 

Net Increase 

178 


915 

- 


Net Position Held in Trust for Pension/Other Employment Benefits 


July 1 


2,936 


- 


- 

June 30 

$ 

3,114 

$ 

915 

$ 

- 


248 Commonwealth of Virginia 


































































Total 


$ 3,400,718 

3,400,718 
_402,089 

2,998,629 


961,042 

2,676,817 



4,115,209 

106,236 

147,989 

183,973 

21,861 

3,913 

37,731 

4,616,912 


10 

( 10 ) 


2,021,740 


66,175,874 
$ 68,197,614 


Commonwealth of Virginia 249 


























Combining Statement of Fiduciary Net Position - Investment Trust Fund 


June 30, 2015 
(Dollars in Thousands) 


Assets and Deferred Outflows of Resources 

Local 

Government 

Investment 

Pool (LGIP) 

Total 

Cash and Cash Equivalents 

$ 1,163,404 

$ 1,163,404 

Investments: 

Bonds and Mortgage Securities 

38,229 

38,229 

Short-term Investments 

1,525,541 

1,525,541 

Total Investments 

1,563,770 

1,563,770 

Receivables, Net: 

Interest and Dividends 

755 

755 

Total Receivables 

755 

755 

Total Assets 

2,727,929 

2,727,929 

Deferred Outflows of Resources 

- 

- 

Total Assets and Deferred Outflows of Resources 

2,727,929 

2,727,929 


Liabilities and Deferred Inflows of Resources 

Total Liabilities 

Deferred Inflows of Resources 

Total Liabilities and Deferred Inflows of Resources 


Net Position Held in Trust for Pool Participants 


2,727,929 


2,727,929 


250 Commonwealth of Virginia 







































Combining Statement of Changes in Fiduciary Net Position - Investment Trust Fund 


For the Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 


Local 

Government 

Investment 


Pool (LGIP) Total 


Additions: 


Investment Income: 

Interest, Dividends, and Other Investment Income $ 

2,197 

$ 

2,197 

Distributions to Shareholders from Net Investment Income 

(2,197) 


(2,197) 

Total Investment Income 

- 


- 

Net Investment Income 

- 


- 

Shares Sold 

4,134,434 


4,134,434 

Reinvested Distributions 

2,248 


2,248 

Total Additions 

4,136,682 


4,136,682 

Deductions: 

Shares Redeemed 

4,136,004 


4,136,004 

Total Deductions 

4,136,004 


4,136,004 

Net Increase 

678 


678 

Net Position Held in Trust for Pool Participants 

July 1 

2,727,251 


2,727,251 

June 30 $ 

2,727,929 

$ 

2,727,929 


Commonwealth of Virginia 251 

































Combining Statement of Fiduciary Net Position - Agency Funds 


June 30, 2015 
(Dollars in Thousands) 


Funds for 
the 

Collection 
of Taxes 
and Fees 


Employee 

Benefits 


Contractor 

Deposits 


Deposits of 
Insurance 
Carriers 


Assets 


Cash and Cash Equivalents 

$ 

192,772 

$ 

3,620 

$ 

34,277 

$ 

49,343 

Investments: 

Short-term Investments 


1 


- 


11 


69,996 

Other 


- 


- 


- 


319,445 

Total Investments 


1 


- 


11 


389,441 

Receivables, Net: 

Accounts 


57,569 


- 


- 


40 

Total Receivables 


57,569 


- 


- 


40 

Other Assets 


- 


- 


- 


- 

Total Assets 

$ 

250,342 

$ 

3,620 

$ 

34,288 

$ 

438,824 


Liabilities 

Accounts Payable and Accrued Expenses 

$ 

- 

$ 

3,620 

$ 

- 

$ 

- 

Amounts Due to Other Governments 


250,303 


- 


- 


- 

Due to Internal Parties (Governmental Funds and Business-type Activities) 








- 

Obligations Under Securities Lending Program 


39 


- 


302 


- 

Other Liabilities 


- 


- 


33,986 


438,824 

Insurance Premiums and Claims Payable 


- 


- 


- 


- 

Total Liabilities 

$ 

250,342 

$ 

3,620 

$ 

34,288 

$ 

438,824 


252 Commonwealth of Virginia 























































Behavioral Unclaimed 



Child 

Behavioral 

Health 

Comptroller's 

Property 



Inmate 

Support 

Health 

Non- 

Debt 

of Other 

Legal 

Consumer 

and Ward 

Collection 

Patient 

Patient 

Setoff 

States 

Settlement 

Services 



$ 16,050 

$ 

16,250 

$ 

1,996 

$ 

39 

$ 

1,022 

$ 

6,006 

$ 14,225 $ 

1,475 


- 


- 


- 


- 


- 


- 

1 

- 

- 


- 


6 


- 


- 


- 

- 

- 

- 


- 


6 


- 


- 


- 

1 

- 



599 


- 


- 


- 


- 


- 


- 


- 


599 


- 


- 


- 


- 


- 


- 


- 


- 


- 


- 


- 


- 


- 


- 


- 

$ 

16,649 

$ 

16,250 

$ 

2,002 

$ 

39 

$ 

1,022 

$ 

6,006 

$ 

14,226 

$ 

1,475 



$ 

2,464 

$ 

- 

$ 

- 

$ 

- 

$ 

- 

$ 

- 

$ 

- 

$ 

2 


- 


- 


- 


- 


- 


6,006 


- 


- 


71 






- 




- 


- 


- 


- 


- 


- 


- 


- 


- 


39 


- 


14,114 


16,250 


2,002 


39 


1,022 


- 


14,187 


1,473 


- 


- 


- 


- 


- 


- 


- 


- 

$ 

16,649 

$ 

16,250 

$ 

2,002 

$ 

39 

$ 

1,022 

$ 

6,006 

$ 

14,226 

$ 

1,475 


Continued on next page 


Commonwealth of Virginia 253 


































































































Combining Statement of Fiduciary Net Position - Agency Funds (Continued from previous page) 


June 30, 2015 
(Dollars in Thousands) 


State 
Asset 
Forfe iture 


Virginia 
School 
for the Deaf 
and Blind 


Woodrow 

Wilson Third 

Rehabilitation Party 

Center Administrator 


Assets 


Cash and Cash Equivalents 

$ 

9,149 

$ 

19 

$ 

2 

$ 

12,122 

Investments: 

Short-term Investments 


- 


- 


- 



Other 


- 


- 


- 


- 

Total Investments 


- 


- 


- 


- 

Receivables, Net: 

Accounts 


- 


- 


- 


2 

Total Receivables 


- 


- 


- 


2 

Other Assets 


- 


- 


- 


26 

Total Assets 

$ 

9,149 

$ 

19 

$ 

2 

$ 

12,150 


Liabilities 

Accounts Payable and Accrued Expenses 

$ 

- 

$ 

- 

$ 

- 

$ 

16 

Amounts Due to Other Governments 


- 


- 


- 


- 

Due to Internal Parties (Governmental Funds and Business-type Activities) 


- 


- 





Obligations Under Securities Lending Program 


- 


- 


- 


- 

Other Liabilities 


9,149 


19 


2 


11,827 

Insurance Premiums and Claims Payable 


- 


- 


- 


307 

Total Liabilities 

$ 

9,149 

$ 

19 

$ 

2 

$ 

12,150 


254 Commonwealth of Virginia 
























































Virginia 

Virginia 




Veterans' 

Individual 



Department of 

Care Center 

Development 



Environmental 

Resident 

Account 



Quality 

Fund 

Trust Fund 

E-Payables 

Total 



$ 

128 

$ 

220 

$ 

- 

$ 

19,827 

$ 

378,542 



- 


- 


- 


- 


70,009 


- 


- 


- 


- 


319,451 


- 


- 


- 


- 


389,460 



- 


- 


- 

- 


58,210 


- 


- 


- 

- 


58,210 


- 


- 


- 

- 


26 

$ 

128 

$ 

220 

$ 

$ 

19,827 

$ 

826,238 



$ 

- 

$ 

- 

$ 

$ 

- 

$ 

6,102 


- 


- 


- 

- 


256,309 






- 



71 


- 


- 


- 

- 


380 


128 


220 


- 

19,827 


563,069 


- 


- 


- 

- 


307 

$ 

128 

$ 

220 

$ 

$ 

19,827 

$ 

826,238 


Commonwealth of Virginia 255 




































































Combining Statement of Changes in Assets and Liabilities - Agency Funds 

For the Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 


Funds for the Collection of Taxes and Fees 


Balance 

July 1 

Additions 

Deletions 


Balance 

June 30 









Assets: 

Cash and Cash Equivalents 

$ 

163,432 

$ 

1,287,862 

$ 

1,258,522 

$ 

192,772 

Short-term Investments 


3 


1 


3 


1 

Accounts Receivable 


80,680 


57,569 


80,680 


57,569 

Total Assets 

$ 

244,115 

$ 

1,345,432 

$ 

1,339,205 

$ 

250,342 


Liabilities: 


Amounts Due to Other Governments 

$ 

244,022 

$ 

1,345,393 

$ 

1,339,112 

$ 

250,303 

Obligations Under Securities Lending Program 


93 


39 


93 


39 

Total Liabilities 

$ 

244,115 

$ 

1,345,432 

$ 

1,339,205 

$ 

250,342 


Employee Benefits 


Assets: 


Cash and Cash Equivalents 

$ 

3,296 

$ 

215,110 

$ 

214,786 

$ 

3,620 

Total Assets 

$ 

3,296 

$ 

215,110 

$ 

214,786 

$ 

3,620 


Liabilities: 

Accounts Payable and Accrued Expenses 

$ 

3,296 

$ 

215,110 

$ 

214,786 

$ 

3,620 

Total Liabilities 

$ 

3,296 

$ 

215,110 

$ 

214,786 

$ 

3,620 


Contractor Deposits 

Assets: 

Cash and Cash Equivalents 

$ 

33,275 

$ 

10,638 

$ 

9,636 

$ 

34,277 

Short-term Investments 


23 


11 


23 


11 

Total Assets 

$ 

33,298 

$ 

10,649 

$ 

9,659 

$ 

34,288 


Liabilities: 

Obligations Under Securities Lending Program 

$ 

742 

$ 

302 

$ 

742 

$ 

302 

Other Liabilities 


32,556 


10,347 


8,917 


33,986 

Total Liabilities 

$ 

33,298 

$ 

10,649 

$ 

9,659 

$ 

34,288 


Deposits of Insurance Carriers 

Assets: 

Cash and Cash Equivalents 

$ 

39,201 

$ 

32,391 

$ 

22,249 

$ 

49,343 

Short-term Investments 


57,810 


69,997 


57,811 


69,996 

Other Investments 


341,572 


3,093 


25,220 


319,445 

Accounts Receivable 


34 


725 


719 


40 

Total Assets 

$ 

438,617 

$ 

106,206 

$ 

105,999 

$ 

438,824 


Liabilities: 


Other Liabilities 

$ 

438,617 

$ 

106,206 

$ 

105,999 

$ 

438,824 

Total Liabilities 

$ 

438,617 

$ 

106,206 

$ 

105,999 

$ 

438,824 


Inmate and Ward 

Assets: 

Cash and Cash Equivalents $ 14,017 $ 2,108 $ 75 $ 16,050 

Accounts Receivable 419 186 6 599 

Total Assets $_ 14,436 $ 2,294 $_81 £ 16,649 


Liabilities: 


Accounts Payable and Accrued Expenses 

$ 

2,346 

$ 

118 $ 

- 

$ 

2,464 

Due to Internal Parties (Governmental Funds and Business-type Activities) 


147 


- 

76 


71 

Other Liabilities 


11,943 


2,252 

81 


14,114 

Total Liabilities 

$ 

14,436 

$ 

2,370 $ 

157 

$ 

16,649 


256 Commonwealth of Virginia 






























































































































Balance 

July 1 


Additions 


Deletions 


Balance 

June 30 

Child Support Collection 









Assets: 

Cash and Cash Equivalents 

$ 

16,263 

$ 

652,908 

$ 

652,921 

$ 

16,250 

Total Assets 

$ 

16,263 

$ 

652,908 

$ 

652,921 

$ 

16,250 


Liabilities: 

Other Liabilities 

$ 

16,263 

$ 

652,908 

$ 

652,921 

$ 

16,250 

Total Liabilities 

$ 

16,263 

$ 

652,908 

$ 

652,921 

$ 

16,250 


Behavioral Health Patient 

Assets: 


Cash and Cash Equivalents 

$ 

1,494 

$ 

3,478 

$ 

2,976 

$ 

1,996 

Other Investments 


106 


- 


100 


6 

Total Assets 

$ 

1,600 

$ 

3,478 

$ 

3,076 

$ 

2,002 


Liabilities: 

Other Liabilities 

$ 

1,600 

$ 

3,478 

$ 

3,076 

$ 

2,002 

Total Liabilities 

$ 

1,600 

$ 

3,478 

$ 

3,076 

$ 

2,002 


Behavioral Health Non-Patient 

Assets: 

Cash and Cash Equivalents _$_ 38 _$_3_ _$_2_ _$_ 39 

Total Assets $_ 38 $_3 $_2 $ 39 


Liabilities: 

Other Liabilities 
Total Liabilities 


Comptroller's Debt Setoff 


Assets: 


Cash and Cash Equivalents 

$ 

999 

$ 

11,219 

$ 

11,196 

$ 

1,022 

Total Assets 

$ 

999 

$ 

11,219 

$ 

11,196 

$ 

1,022 


$_38_ _$_3_ _$_2_ _$_39 

$ 38 $ 3 $ 2 $ 39 


Liabilities: 

Other Liabilities 

$ 

999 

$ 

11,219 

$ 

11,196 

$ 

1,022 

Total Liabilities 

$ 

999 

$ 

11,219 

$ 

11,196 

$ 

1,022 


Unclaimed Property of Other States 

Assets: 

Cash and Cash Equivalents _$_ 8,984 _$_ 6,006 _$_ 8,984 _$_ 6,006 

Total Assets $_ 8,984 $_ 6,006 $ 8,984 $_ 6,006 


Liabilities: 

Amounts Due to Other Governments $ 8,984 $ 6,006 $ 8,984 $ 6,006 

Total Liabilities _$_ 8,984 _$_ 6,006 $ 8,984 _$_ 6,006 

Legal Settlement 


Assets: 


Cash and Cash Equivalents 

$ 

13,139 

$ 

5,901 

$ 

4,815 

$ 

14,225 

Short-term Investments 


3 


1 


3 


1 

Total Assets 

$ 

13,142 

$ 

5,902 

$ 

4,818 

$ 

14,226 


Liabilities: 

Obligations Under Securities Lending Program 

$ 

97 

$ 

39 

$ 

97 

$ 

39 

Other Liabilities 


13,045 


5,863 


4,721 


14,187 

Total Liabilities 

$ 

13,142 

$ 

5,902 

$ 

4,818 

$ 

14,226 


Continued on next page 


Commonwealth of Virginia 257 















































































































































Combining Statement of Changes in Assets and Liabilities - Agency Funds (Continued from previous page) 

For the Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 


Balance Balance 

July 1 Additions Deletions June 30 


Consumer Services 


Assets: 

Cash and Cash Equivalents 

$ 

1,408 

$ 

199 

$ 

132 

$ 

1,475 

Total Assets 

$ 

1,408 

$ 

199 

$ 

132 

$ 

1,475 


Liabilities: 


Accounts Payable and Accrued Expenses 

$ 

2 

$ 

27 

$ 

27 

$ 

2 

Other Liabilities 


1,406 


172 


105 


1,473 

Total Liabilities 

$ 

1,408 

$ 

199 

$ 

132 

$ 

1,475 


State Asset Forfeiture 

Assets: 

Cash and Cash Equivalents 

$ 

8,861 

$ 

6,388 

$ 

6,100 

$ 

9,149 

Short-term Investments 


5 


- 


5 


- 

Total Assets 

$ 

8,866 

$ 

6,388 

$ 

6,105 

$ 

9,149 


Liabilities: 

Obligations Under Securities Lending Program 

$ 

149 

$ 

- 

$ 

149 

$ 

- 

Other Liabilities 


8,717 


6,388 


5,956 


9,149 

Total Liabilities 

$ 

8,866 

$ 

6,388 

$ 

6,105 

$ 

9,149 


Virginia School for the Deaf and the Blind 

Assets: 

Cash and Cash Equivalents _$_ 19 _$_ 13 _$_ 13 _$_ 19 

Total Assets $_19 $_13 $_13 $_19 


Liabilities: 

Other Liabilities _$_ 19 _$_ 13 _$_ 13 _$_ 19 

Total Liabilities $ 19$ 13$ 13$ 19 


Woodrow Wilson Rehabilitation Center 


Assets: 


Cash and Cash Equivalents 

$ 

4 

$ 

14 

$ 

16 

$ 

2 

Total Assets 

$ 

4 

$ 

14 

$ 

16 

$ 

2 


Liabilities: 

Other Liabilities 

$ 

4 

$ 

14 

$ 

16 

$ 

2 

Total Liabilities 

$ 

4 

$ 

14 

$ 

16 

$ 

2 


Third Party Administrator 


Assets: 


Cash and Cash Equivalents 

$ 

12,007 

$ 

4,319 

$ 

4,204 

$ 

12,122 

Accounts Receivable 


4 


2 


4 


2 

Other Assets 


33 


- 


7 


26 

Total Assets 

$ 

12,044 

$ 

4,321 

$ 

4,215 

$ 

12,150 


Liabilities: 

Accounts Payable and Accrued Expenses 

$ 

2 

$ 

16 

$ 

2 

$ 

16 

Other Liabilities 


11,707 


4,296 


4,176 


11,827 

Insurance Premiums and Claims Payable 


335 


- 


28 


307 

Total Liabilities 

$ 

12,044 

$ 

4,312 

$ 

4,206 

$ 

12,150 


258 Commonwealth of Virginia 


























































































































Additions 


Deletions 


Balance 
July 1 


Balance 
June 30 


Department of Environmental Quality 


Assets: 


Cash and Cash Equivalents 

$ 

128 

$ 

- 

$ 

- 

$ 

128 

Total Assets 

$ 

128 

$ 

- 

$ 

- 

$ 

128 


Liabilities: 

Other Liabilities 

$ 

128 

$ 

- 

$ 

- 

$ 

128 

Total Liabilities 

$ 

128 

$ 

- 

$ 

- 

$ 

128 


Virginia Veterans' Care Center Resident Fund 

Assets: 

Cash and Cash Equivalents _$_ 134 _$_ 1,156 _$_ 1,070 _$_ 220 

Total Assets $_ 134 $ 1,156 $ 1,070 $_ 220 


Liabilities: 

Other Liabilities 
Total Liabilities 


Virginia Individual Development Account Trust Fund 

Assets: 


Cash and Cash Equivalents $_- $_ 65 $_ 65 $ 


Total Assets 

$ 

$ 

65 

$ 

65 

$ 

- 


Liabilities: 


Other Liabilities $ - $ 65 $ 65 $ 


Total Liabilities 

$ 

- $ 

65 

$ 

65 

$ 

- 


$ 

134 

$ 

1,156 

$ 

1,070 

$ 

220 

$ 

134 

$ 

1,156 

$ 

1,070 

$ 

220 


E-Payables 


Assets: 


Cash and Cash Equivalents 

$ 

18,497 

$ 

109,916 

$ 

108,586 

$ 

19,827 

Total Assets 

$ 

18,497 

$ 

109,916 

$ 

108,586 

$ 

19,827 


Liabilities: 

Other Liabilities 

$ 

18,497 

$ 

109,916 

$ 

108,586 

$ 

19,827 

Total Liabilities 

$ 

18,497 

$ 

109,916 

$ 

108,586 

$ 

19,827 


Totals - Agency Funds 

Assets: 

Cash and Cash Equivalents 

$ 

335,196 

$ 

2,349,694 

$ 

2,306,348 

$ 

378,542 

Short-term Investments 


57,844 


70,010 


57,845 


70,009 

Other Investments 


341,678 


3,093 


25,320 


319,451 

Accounts Receivable 


81,137 


58,482 


81,409 


58,210 

Other Assets 


33 


- 


7 


26 

Total Assets 

$ 

815,888 

$ 

2,481,279 

$ 

2,470,929 

$ 

826,238 


Liabilities: 

Accounts Payable and Accrued Expenses 

$ 

5,646 

$ 

215,271 

$ 

214,815 

$ 

6,102 

Amounts Due to Other Governments 


253,006 


1,351,399 


1,348,096 


256,309 

Due to Internal Parties (Governmental Funds and Business-type Activities) 


147 


- 


76 


71 

Obligations Under Securities Lending Program 


1,081 


380 


1,081 


380 

Other Liabilities 


555,673 


914,296 


906,900 


563,069 

Insurance Premiums and Claims Payable 


335 


- 


28 


307 

Total Liabilities 

$ 

815,888 

$ 

2,481,346 

$ 

2,470,996 

$ 

826,238 


Commonwealth of Virginia 259 



































































































































Component Units are organizations that are legally separate from the Commonwealth of Virginia. Each discrete component unit 
serves or benefits those outside of the primary government. 


The Higher Education Institutions account for the resources received and used in the operation of the Commonwealth’s 
institutions of higher education and medical teaching hospitals. 

Higher Education Institutions included in this section are: 

University of Virginia, including the University of Virginia Medical Center, and the University of Virginia College at Wise 
Virginia Polytechnic Institute and State University 

Virginia Commonwealth University, including the Virginia Commonwealth University Health System Authority 

The College of William & Mary, including Richard Bland College and the Virginia Institute of Marine Science 

Virginia Military Institute 

Virginia State University 

Norfolk State University 

University of Mary Washington 

James Madison University 

Radford University 

Old Dominion University 

George Mason University 

Virginia Community College System 

Christopher Newport University 

Longwood University 

Southwest Virginia Higher Education Center 

Roanoke Higher Education Authority 

Innovation and Entrepreneurship Investment Authority 

Institute for Advanced Learning and Research 

Southern Virginia Higher Education Center 

New College Institute 


260 Commonwealth of Virginia 







The Virginia Economic Development Partnership works to 
enhance and increase the Commonwealth’s commerce and trade. 

The Virginia Outdoors Foundation promotes preservation 
and fundraising for the purchase of preservation land. 

The Virginia Port Authority is empowered to maintain and 
operate Virginia's harbors and ports. 

The Virginia Tourism Authority promotes tourism and film 
production industries of the Commonwealth. 

The Virginia Foundation for Healthy Youth determines the 
appropriate recipients of monies in the Virginia Tobacco Set¬ 
tlement Fund. 

The Tobacco Indemnification and Community Revitaliza¬ 
tion Commission determines the appropriate recipients of 
monies in the Tobacco Indemnification and Community Revital¬ 
ization Fund. 

The Hampton Roads Sanitation District Commission operates 
a sewage system for 17 localities in the Chesapeake Bay Area. 

The Virginia Biotechnology Research Partnership 
Authority assists in the development of a biotechnology 
research park. 

The Virginia Small Business Financing Authority assists 
small businesses in the Commonwealth in obtaining financing 
for new businesses or the expansion of existing businesses. 

The Virginia School for the Deaf and Blind Foundation op¬ 
erates exclusively for the benefit of the Virginia School for the 
Deaf and Blind. 

The Science Museum of Virginia Foundation operates to 
implement and fund projects and operations of the Science 
Museum of Virginia. 

The Virginia Commercial Space Flight Authority dissemi¬ 
nates knowledge pertaining to scientific and technological re¬ 
search and development among public and private entities in¬ 
cluding, but not limited to, knowledge in the area of commercial 
space flight, and to promote industrial and economic develop¬ 
ment. 


The Danville Science Center, Inc., promotes programs, pro¬ 
jects and operations to educate students. 

The Virginia Museum of Fine Arts Foundation implements 
and funds programs, projects, and operations of the Virginia 
Museum of Fine Arts. 

The A. L. Philpott Manufacturing Extension Partnership 

promotes industrial expansion by providing consulting services 
to manufacturers. 

The Virginia University Research Partnership oversees the 
administration of grant payments for use by a non-profit, public 
benefit research institute that conducts research and develop¬ 
ment for government agencies, commercial businesses, foun¬ 
dations, and other organizations, as well as commercializes 
technology. 

The Fort Monroe Authority assists in formulating a reuse plan 
for Fort Monroe. 

The Assistive Technology Loan Fund Authority provides 
assistance with loans and in the purchase of assistive technol¬ 
ogy or other equipment to enable Virginians with disabilities to 
become more independent. 

The Virginia Sesquicentennial of the American Civil War 
Foundation was created to prepare for and commemorate the 
sesquicentennial of Virginia's participation in the American Civil 
War. 

The Virginia Land Conservation Foundation acquires inter¬ 
ests in preservation land and provides grants to other entities to 
acquire interests in preservation land. 

The Virginia Arts Foundation works to promote the arts in the 
Commonwealth. 

The Library of Virginia Foundation promotes and supports 
the Library of Virginia. 

The Virginia Health Workforce Development Authority pro¬ 
vides assistance to the health professions. 


Commonwealth of Virginia 261 







Combining Statement of Net Position - Nonmajor Component Units 

June 30, 2015 
(Dollars in Thousands) 


Assets and Deferred Outflows of Resources 

University 
of Virginia 

Virginia 

Polytechnic 

Institute and 

State University 

Virginia 

Commonwealth 

University 


The 

College of 

William 

and Mary 

Cash and Cash Equivalents 

$ 654,698 

$ 260,765 

$ 

401,519 

$ 

47,554 

Investments 

7,510,200 

264,208 


1,897,219 


60,055 

Receivables, Net 

408,172 

117,972 


434,169 


20,796 

Contributions Receivable, Net 

95,031 

99,115 


37,253 


27,933 

Due from Primary Government 

5,257 





412 

Due from Component Units 

15,371 

15,549 


11,265 


4,611 

Inventory 

26,987 

19,398 


24,428 


644 

Prepaid Items 

33,142 

20,037 


13,230 


2,899 

Other Assets 

29,438 

3,696 


29,948 


2,584 

Restricted Cash and Cash Equivalents 

11,667 

176,690 


97,839 


40,989 

Restricted Investments 

721,840 

802,680 


552,268 


700,648 

Other Restricted Assets 

11,596 

15,083 


21,155 


140,312 

Nondepreciable Capital Assets 

293,784 

255,448 


377,982 


181,208 

Depreciable Capital Assets, Net 

3,280,518 

1,658,864 


1,425,870 


646,777 

Total Assets 

13,097,701 

3,709,505 


5,324,145 


1,877,422 

Deferred Outflows of Resources 

88,330 

43,226 


93,334 


19,232 

Total Assets and Deferred Outflow s of Resources 

13,186,031 

3,752,731 


5,417,479 


1,896,654 


Liabilities and Deferred Inflows of Resources 

Accounts Payable 

337,617 

133,213 


224,780 


38,397 

Amounts Due to Other Governments 







Due to Primary Government 

392 

3,811 


4,843 


1,259 

Due to Component Units 







Due to External Parties (Fiduciary Funds) 

5,654 

6,131 


5,685 


1,148 

Unearned Revenue 

88,481 

44,383 


36,887 


13,224 

Obligations Under Securities Lending Program 

- 

- 


- 


46 

Other Liabilities 

451,685 

88,280 


169,568 


14,360 

Loans Payable to Primary Government 

- 

- 


- 


129 

Claims Payable: 

Due Within One Year 

- 

- 


100,864 


- 

Due in More Than One Year 

- 

- 


41,529 



Long-term Liabilities: 

Due Within One Year 

135,489 

64,581 


94,313 


30,175 

Due in More Than One Year 

2,615,177 

1,163,314 


1,462,501 


421,717 

Total Liabilities 

3,634,495 

1,503,713 


2,140,970 


520,455 

Deferred Inflows of Resources 

160,635 

63,575 


69,389 


18,214 

Total Liabilities and Deferred Inflow s of Resources 

3,795,130 

1,567,288 


2,210,359 


538,669 


Net Position 

Net Investment in Capital Assets 

1,953,199 

1,226,823 


992,340 


561,967 

Restricted For: 

Nonexpendable: 

Higher Education 

1,257,344 

455,167 


303,546 


522,159 

Other 

- 

- 


- 


- 

Expendable: 

Capital Projects/Construction/Capital Acquisition 

- 

- 


- 


- 

Debt Service 

- 

- 


- 



Gifts and Grants .... 

Higher Education 

3,740,724 

598,849 


358,704 


337,085 

Other 

- 

- 


- 


- 

Unrestricted 

2,439,634 

(95,396) 


1,552,530 


(63,226) 

Total Net Rcsition (Deficit) 

$ 9,390,901 

$ 2,185,443 

$ 

3,207,120 

$ 

1,357,985 


262 Commonwealth of Virginia 






























































































Virginia 

Virginia 

Norfolk 

University 

James 


Old 

George 


Military 

State 

State 

of Mary 

Madison 

Radford 

Dominion 

Mason 


Institute 

University 

University 

Washington 

University 

University 

University 

University 


$ 

20,448 

$ 25,077 

$ 22,632 

$ 16,093 

$ 161,496 

$ 90,418 

$ 130,977 

$ 211,181 


81,315 

943 

19,103 

2,331 

15,239 

6,714 

23,177 

9,099 


2,874 

5,864 

6,569 

6,807 

8,176 

5,780 

84,254 

38,562 


25,964 

- 

373 

2,933 

5,850 

1,539 

16,347 

28,117 


^B 

56 

307 

304 

8 

n 

823 

^| 


11,460 

6,318 

4,589 

2,870 

7,266 

10,197 

7,017 

7,547 


6,917 



522 

1,075 

466 

502 

1,251 


1,261 

1,968 

980 

1,039 

10,701 

4,061 

3,056 

5,844 


98 

86 

1,477 

1,407 

28 

4,400 

367 

4,855 


3,277 

14,072 

5,723 

21,512 

35,606 

11,793 

45,248 

30,330 


312,306 

45,610 

8,912 

40,436 

84,380 

56,918 

199,793 

131,711 


5,572 

- 

- 

- 

6,421 

202 

- 

11,228 


41,665 

77,597 

26,124 

104,067 

211,821 

97,331 

77,182 

130,847 


235,982 

217,137 

232,275 

339,633 

769,136 

219,283 

536,750 

1,215,950 


749,139 

394,728 

329,064 

539,954 

1,317,203 

509,102 

1,125,493 

1,826,522 


2,927 

8,827 

4,749 

3,989 

17,975 

6,783 

23,832 

34,879 


752,066 

403,555 

333,813 

543,943 

1,335,178 

515,885 

1,149,325 

1,861,401 


11,742 

9,809 

7,355 

20,857 

45,321 

24,862 

45,435 

61,271 

1,347 







7 

286 

365 

406 

341 

1,497 

642 

1,119 

1,468 


|B 

IB 




8,037 

n 

216 

244 

438 

169 

2,636 

248 

1,038 

294 

1,405 

2,765 

3,718 

1,437 

15,146 

4,328 

14,164 

48,413 

521 

704 

717 

5 

3,958 

2,899 

2,148 

4,762 

4,127 

4,000 

4,011 

4,234 

13,620 

4,882 

12,448 

20,894 

- 

- 

- 

- 

- 

- 

- 

12,500 


2,238 

8,505 

3,867 

6,591 

19,190 

3,875 

23,821 

43,783 

101,481 

195,482 

141,670 

327,279 

467,087 

125,278 

473,076 

1,046,887 

123,363 

221,874 

162,182 

360,913 

568,455 

167,014 

581,286 

1,240,279 

4,351 

10,209 

10,140 

6,566 

22,647 

10,225 

20,052 

34,086 

127,714 

232,083 

172,322 

367,479 

591,102 

177,239 

601,338 

1,274,365 


260,231 176,766 187,719 197,335 701,554 276,223 377,207 576,379 


152,824 


18,984 

8,962 

35,018 

56,808 

26,026 


139,879 

87,541 

- 


- 

- 

- 

- 

- 


- 

- 


- 


- 

- 

- 

- 

- 


- 

- 



- 

- 

- 

- 

- 


- 


- 


- 

- 

- 

- 

- 


- 

- 

168,559 


24,541 

22,414 

18,712 

48,303 

35,990 


108,602 

79,817 

- 


- 

- 

- 

- 

- 


- 

- 

42,738 


(48,819) 

(57,604) 

(74,601) 

(62,589) 

407 


(77,701) 

(156,701) 

$ 624,352 

$ 

171,472 $ 

161,491 $ 

176,464 $ 

744,076 $ 

338,646 

$ 

547,987 $ 

587,036 


Continued on next page 


Commonwealth of Virginia 263 





























































































































Combining Statement of Net Position - Nonmajor Component Units (Continued from previous page) 
June 30, 2015 
(Dollars in Thousands) 


Southwest 


Assets and Deferred Outflows of Resources 

Virginia 

Community 

College 

System 

Christopher 

Newport 

University 

Longwood 

University 

Virginia 

Higher 

Education 

Center 

Cash and Cash Equivalents 

$ 240,832 

$ 34,262 

$ 53,011 

$ 

Investments 

60,009 

44 

23,969 


Receivables, Net 

19,142 

976 

3,608 

1,848 

Contributions Receivable, Net 

11,380 

15,679 

3,474 

- 

Due from Primary Government 

1,035 

1 



Due from Component Units 

24,776 

2,646 

776 

65 

Inventory 

1,777 

230 

594 


Prepaid Items 

22,374 

1,749 

3,025 


Other Assets 

307 

2,794 

765 

165 

Restricted Cash and Cash Equivalents 

43,700 

36,809 

3,678 

- 

Restricted Investments 

165,113 

25,038 

40,933 


Other Restricted Assets 

- 

1,116 

108 


Nondepreciable Capital Assets 

195,599 

89,272 

51,943 

287 

Depreciable Capital Assets, Net 

1,167,160 

520,075 

271,039 

11,065 

Total Assets 

1,953,204 

730,691 

456,923 

13,430 

Deferred Outflows of Resources 

52,562 

9,147 

6,899 

19 

Total Assets and Deferred Outflow s of Resources 

2,005,766 

739,838 

463,822 

13,449 


Liabilities and Deferred Inflows of Resources 


Accounts Payable 

74,792 

11,611 

7,458 

417 

Amounts Due to Other Governments 

4,795 




Due to Primary Government 

3,160 

415 

390 

12 

Due to Component Units 



|B 


Due to External Parties (Fiduciary Funds) 

5,023 

179 

162 

19 

Unearned Revenue 

55,603 

1,508 

2,398 


Obligations Under Securities Lending Program 

28 

898 

1,701 

- 

Other Liabilities 

13,621 

5,367 

6,979 


Loans Payable to Primary Government 

4,000 

- 

- 

- 

Claims Payable: 

Due Within One Year 

- 

- 

- 

- 

Due in More Than One Year 

- 

- 

- 


Long-term Liabilities: 

Due Within One Year 

25,833 

19,100 

5,302 

187 

Due in More Than One Year 

731,739 

338,098 

197,188 

2,550 

Total Liabilities 

918,594 

377,176 

221,578 

3,185 

Deferred Inflows of Resources 

88,646 

6,407 

6,211 

316 

Total Liabilities and Deferred Inflows of Resources 

1,007,240 

383,583 

227,789 

3,501 


Net Position 

Net Investment in Capital Assets 

1,240,158 

344,967 

180,624 

10,821 

Restricted For: 

Nonexpendable: 

Higher Education 

74,531 

20,466 

36,411 


Other 

- 

- 

- 

- 


Expendable: 


Capital Projects/Construction/Capital Acquisition 


- 

- 

- 

- 

Debt Service 


- 

- 

- 


Gifts and Grants 


- 

- 

- 

- 

Higher Education 


95,110 

20,304 

24,286 


Other 


- 

- 

- 

- 

Unrestricted 


(411,273) 

(29,482) 

(5,288) 

(873) 

Total Net Position (Deficit) 

$ 

998,526 $ 

356,255 $ 

236,033 $ 

9,948 


264 Commonwealth of Virginia 


























































































Southern 


Roanoke 

Innovation and 

Institute for 

Virginia 


Virginia 



Higher 

Entrepreneurship 

Advanced 

Higher 

New 

Economic 

Virginia 

Virginia 

Education 

Investment 

Learning 

Education 

College 

Development 

Outdoors 

Port 

Authority 

Authority 

and Research 

Center 

Institute 

Partnership 

Foundation 

Authority 


$ 2,429 

$ 

7,301 

$ 

3,055 

$ 

822 

$ 

2,409 

$ 

2,568 

$ 

1,504 

$ 

81,756 

- 


- 


626 


- 


1,027 


- 


- 


192 

12 


539 


169 


18 


3 


717 


711 


95,702 



- 


- 


- 


553 


- 


- 


- 









5 







2,592 


- 


153 


65 


- 


- 


- 


- 















17,495 

21 


107 


224 


- 


- 


392 


36 


9,238 

136 


686 


14 




3 


20 


1 


32 

- 


- 


247 


297 


- 


- 


1,423 


140,661 









542 






15,327 

- 


- 


573 


- 


- 


- 


- 


- 

1,024 


5,629 


200 




1,201 




5,050 


213,853 

26,842 


10,225 


13,601 


1,417 


18,815 


616 


127 


561,034 

33,056 


24,487 


18,862 


2,619 


24,558 


4,313 


8,852 


1,135,290 

46 


- 


70 


225 


104 


955 


- 


5,753 

33,102 


24,487 


18,932 


2,844 


24,662 


5,268 


8,852 


1,141,043 


271 

680 

203 

178 

162 

309 

142 

39,566 










- 

- 

16 

7 

- 

- 











- 

- 

15 

6 

- 

- 

6 

29 

384 

239 

- 

11 

52 

- 


- 

- 

- 

- 

- 

- 

- 

1,993 

19 

118 

40 

- 

- 

- 

- 

9,636 

2,363 

- 

- 

- 

- 

- 

- 

- 


- 

- 

- 

- 

- 

- 

- 

- 


- 

- 

- 

- 

- 

- 



143 

239 

110 

86 

36 

585 

78 

24,135 

811 

- 

816 

2,702 

1,258 

12,965 

108 

578,641 

3,636 

1,421 

1,408 

2,997 

1,480 

13,911 

328 

653,977 

99 

- 

114 

395 

184 

2,419 

- 

2,481 

3,735 

1,421 

1,522 

3,392 

1,664 

16,330 

328 

656,458 


27,005 15,855 11,993 1,417 20,015 616 5,176 241,337 


542 

35 

- - - 15,883 

35,065 


729 - 1,180 

1,526 

_ 2,362 _ 7,211 _ 4,688 _ (1,965) _ 1,261 _ (11,678) _ 1,787 _ 192,300 

$_ 29,367 _$_ 23,066 __$_ 17,410 _$_ (548) $ 22,998 _$_ (11,062) _$_ 8,524 $ 484,585 


Continued on next page 


Commonwealth of Virginia 265 





























































































































Combining Statement of Net Position - Nonmajor Component Units (Continued from previous page) 
June 30, 2015 
(Dollars in Thousands) 


Assets and Deferred Outflows of Resources 

Virginia 

Tourism 

Authority 

Virginia 

Foundation 

for Healthy 

Youth 

Tobacco 

Indemnification 

and 

Community 

Revitalization 

Commission 

Hampton 

Roads 

Sanitation 

District 

Commission 

Cash and Cash Equivalents 

$ 4,164 

$ 11,814 

$ 32,261 

$ 7,819 

Investments 

- 

- 

275,998 

121,575 

Receivables, Net 

10 

25 

7,044 

47,851 

Contributions Receivable, Net 

- 

- 

- 

- 

Due from Primary Government 





Due from Component Units 

- 

- 

- 


Inventory 




27,553 

Prepaid Items 

180 

- 

5 

- 

Other Assets 

1 

6 

3,223 

324 

Restricted Cash and Cash Equivalents 

- 

- 

21,358 

86,451 

Restricted Investments 



191,093 


Other Restricted Assets 

- 

- 

1,552 


Nondepreciable Capital Assets 

811 



241,541 

Depreciable Capital Assets, Net 

730 

- 

- 

859,810 

Total Assets 

5,896 

11,845 

532,534 

1,392,924 

Deferred Outflows of Resources 

634 

131 

139 

16,587 

Total Assets and Deferred Outflow s of Resources 

6,530 

11,976 

532,673 

1,409,511 


Liabilities and Deferred Inflows of Resources 

Accounts Payable 

226 

74 

78 

43,924 

Amounts Due to Other Governments 





Due to F’rimary Government 

- 

9 

7 


Due to Component Units 





Due to External Parties (Fiduciary Funds) 

- 

9 

7 


Unearned Revenue 

2 

- 

- 


Obligations Under Securities Lending Program 

- 

- 

- 

- 

Other Liabilities 

- 

665 

4,316 

14,797 

Loans Payable to Primary Government 

- 

- 

- 

- 

Claims Payable: 

Due Within One Year 

- 

- 

- 

- 

Due in More Than One Year 

- 

- 

- 


Long-term Liabilities: 

Due Within One Year 

341 

36 

22 

30,831 

Due in More Than One Year 

7,305 

1,857 

1,396 

752,734 

Total Liabilities 

7,874 

2,650 

5,826 

842,286 

Deferred Inflows of Resources 

1,083 

269 

203 

10,400 

Total Liabilities and Deferred Inflows of Resources 

8,957 

2,919 

6,029 

852,686 


Net Position 

Net Investment in Capital Assets 

1,541 

- 

- 

385,597 


Restricted For: 


Nonexpendable: 


Higher Education 

- 


Other 

- 

. 


Expendable: 


Capital Projects/Construction/Capital Acquisition 


- 

- 

212,226 


- 

Debt Service 


- 

- 

- 


66,188 

Gifts and Grants 


- 

- 

- 


- 

Higher Education 


- 

- 

- 



Other 


- 

- 

- 


- 

Unrestricted 


(3,968) 

9,057 

314,418 


105,040 

Total Net Fbsition (Deficit) 

$ 

(2,427) $ 

9,057 $ 

526,644 

$ 

556,825 


266 Commonwealth of Virginia 


























































































Virginia 

Biotechnology 

Research 

Partnership 

Authority 

Virginia 

Small 

Business 

Financing 

Authority 

Virginia 

School 

for the Deaf 

and Blind 

Foundation 

Science 

Museum 

of Virginia 

Foundation 

Virginia 

Commercial 

Space Flight 
Authority 

Danville 

Science 

Center, Inc. 

Virginia 

Museum 

of Fine Arts 

Foundation 

A. L. Philpott 
Manufacturing 

Extension 

Partnership 


$ 3,744 

$ 3,174 

$ 3,695 

$ 656 

$ 1,737 

$ 57 

$ 922 

$ 1,171 

6,164 

13 

1,340 

573 

- 

349 

7,605 

- 

28,279 

13,475 


13 

2,844 

2 


379 

- 

- 

- 

4,049 

- 

28 

5,274 

- 









- 

- 

- 

- 

8,037 

- 

- 

- 


- 

- 



4 


- 

1 

- 

- 

4 

145 

- 

- 

- 

396 






5,111 


- 

27,639 

- 

5,138 

- 

258 

13,534 

- 


- 


14,813 


497 

245,888 


- 

10,667 

- 

- 

- 

- 

- 

- 

3,369 



1,792 





64 

- 

- 

4 

112,691 

34 

409 

2 

42,017 

54,968 

5,035 

27,042 

125,454 

1,229 

278,743 

1,552 

1,713 

864 

- 

- 

- 

- 

- 

- 

43,730 

55,832 

5,035 

27,042 

125,454 

1,229 

278,743 

1,552 


42 

32 

- 

1 

4,310 

- 

220 

511 










2 

- 

597 

- 

- 

- 











3 

- 

- 

- 

- 

- 


15 

- 

- 

9 

2,899 

- 

- 

87 

- 

364 

- 

- 

- 

- 

- 

- 

11 

10,667 

- 

- 

- 

- 

610 


- 

- 

- 

- 

- 

- 

- 

- 



3,525 2 1,225 169 


27,111 1,215 8 43,750 



3,433 - - 1,796 112,691 34 409 2 



- 

- 

- 


- 


- 


- 


- 



- 

- 

- 


5,898 


- 


254 


151,646 

- 



- 

- 

- 


6,342 


- 


- 


348 

- 


- 

- 

- 


- 


- 


- 


- 



32 

30,507 

- 


9,893 


- 


529 


99,656 

- 


- 

- 

- 


- 


- 


- 


- 



396 

7,362 

- 


1,262 


- 


- 


- 

- 


9,047 

4,580 

5,035 


1,234 


5,554 


412 


(19,121) 

783 

$ 

12,908 $ 

42,449 $ 

5,035 

$ 

26,425 

$ 

118,245 

$ 

1,229 

$ 

232,938 $ 

785 


Continued on next page 


Commonwealth of Virginia 267 





























































































































Combining Statement of Net Position - Nonmajor Component Units (Continued from previous page) 
June 30, 2015 
(Dollars in Thousands) 


Virginia 

University 

Research 


Fort 

Monroe 


Assistive 
Technology 
Loan Fund 


Virginia 

Sesquicentennial 
of the 
American 
Civil War 


Assets and Deferred Outflows of Resources 

Partnership 


Authority 


Authority 


Foundation 








Cash and Cash Equivalents 

$ 4 

$ 

5,134 

$ 

7,047 

$ 

303 

Investments 

- 


- 


- 


- 

Receivables, Net 

- 


411 


2,468 



Contributions Receivable, Net 

- 


- 


- 



Due from Primary Government 








Due from Component Units 

- 


- 


- 



Inventory 








Prepaid Items 

- 


173 


- 



Other Assets 








Restricted Cash and Cash Equivalents 

- 


275 


- 



Restricted Investments 








Other Restricted Assets 

- 


- 


- 



Nondepreciable Capital Assets 

- 


877 


- 



Depreciable Capital Assets, Net 

- 


134 


- 



Total Assets 

4 


7,004 


9,515 


303 

Deferred Outflows of Resources 

- 


232 


- 


- 

Total Assets and Deferred Outflow s of Resources 

4 


7,236 


9,515 


303 


Liabilities and Deferred Inflows of Resources 

Accounts Payable 

- 


1,360 


- 


- 

Amounts Due to Other Governments 








Due to Primary Government 

- 


11 


- 



Due to Component Units 








Due to External Parties (Fiduciary Funds) 

- 


22 


- 



Unearned Revenue 

- 


31 


- 



Obligations Under Securities Lending Program 

- 


- 


- 


- 

Other Liabilities 

- 


281 


- 



Loans Payable to Primary Government 

- 


- 


- 


- 

Claims Payable: 

Due Within One Year 

- 


- 


- 


- 

Due in More Than One Year 

- 


- 


- 



Long-term Liabilities: 

Due Within One Year 

- 


46 


6 



Due in More Than One Year 

- 


2,192 


- 



Total Liabilities 

- 


3,943 


6 


- 

Deferred Inflows of Resources 

- 


329 


- 


~ 

Total Liabilities and Deferred Inflow s of Resources 

- 


4,272 


6 


. 


Net Position 

Net Investment in Capital Assets 

- 


1,011 


- 


- 

Restricted For: 

Nonexpendable: 

Higher Education 

- 


- 


- 



Other 

- 


9 


- 


- 

Expendable: 

Capital Projects/Construction/Capital Acquisition 

- 


- 


- 


- 

Debt Service 

- 


- 


- 



Gifts and Grants 

- 


- 


30 


303 

Higher Education 

- 


- 


- 



Other 

- 


- 


- 


- 

Unrestricted 

4 


1,944 


9,479 


- 

Total Net Position (Deficit) 

$ 4 

$ 

2,964 

$ 

9,509 

$ 

303 


268 Commonwealth of Virginia 


























































































Virginia 

Land 

Conservation 

Foundation 

Virginia 

Arts 

Foundation 

Library 
of Virginia 

Foundation 

Virginia 

Health 

Workforce 

Development 

Authority 

Total 

Nonmajor 

Component 

Units 


$ 2,187 

$ 

$ 36 

$ 108 

$ 2,558,840 

- 

- 

1,489 

- 

10,390,576 

- 

- 

- 

- 

1,366,241 

- 

- 

52 

- 

380,944 





8,208 

- 

- 

- 

- 

143,170 



91 


129,934 

- 

- 

- 

- 

135,892 





92,368 

- 

993 

36 

10 

877,253 



1,300 


4,358,046 

- 

- 

- 

- 

225,585 

- 

- 

- 

- 

2,687,504 

- 

- 

14 

- 

14,354,083 

2,187 

993 

3,018 

118 

37,708,644 

- 

- 

- 

- 

444,163 

2,187 

993 

3,018 

118 

38,152,807 


- 

32 

- 

1,147,258 

^■ 



6,149 


- 

- 

21,055 




8,037 


- 

- 

29,352 


- 

- 

337,618 

- 

- 

- 

20,744 


34 

- 

859,270 

- 

- 

- 

18,992 


_ 

100,864 


41,529 



- 

- 

548,465 


- 

- 

11,245,393 

- 

66 

- 

14,384,726 

- 

- 

- 

550,863 

- 

66 

- 

14,935,589 


14 - 10,094,255 



- 

- 

3,196,208 

993 

990 

- 

159,825 



- 


- 


- 


- 


234,799 


- 


- 


- 


- 


101,253 


- 


- 


411 


10 


141,371 


- 


- 


- 


- 


5,683,909 


- 


- 


- 


- 


10,546 


2,187 


- 


1,537 


108 


3,595,052 

$ 

2,187 

$ 

993 

$ 

2,952 

$ 

118 

$ 

23,217,218 


Commonwealth of Virginia 269 




























































































Combining Statement of Activities - Nonmajor Component Units 

For the Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 


Program Revenues 





Operating 

Capital 




Charges for 

Grants and 

Grants and 

Net (Expenses) 


Expenses 

Services 

Contributions 

Contributions 

Revenue 

Higher Education 






University of Virginia 

$ 3,555,450 

$ 2,605,453 

$ 821,753 

$ 48,792 

$ (79,452) 

Virginia Polytechnic Institute and State University 

1,388,823 

721,264 

412,181 

36,487 

(218,891) 

Virginia Commonwealth University 

3,471,331 

3,171,100 

279,268 

28,373 

7,410 

The College of William and Mary 

456,623 

264,420 

86,848 

41,354 

(64,001) 

Virginia Military Institute 

94,452 

46,647 

22,483 

36,881 

11,559 

Virginia State University 

140,613 

54,717 

33,331 

43,377 

(9,188) 

Norfolk State University 

158,073 

51,761 

31,725 

26,930 

(47,657) 

University of Mary Washington 

131,563 

77,573 

4,761 

17,334 

(31,895) 

James Madison University 

497,980 

363,026 

39,847 

43,830 

(51,277) 

Radford University 

191,055 

113,703 

26,562 

37,009 

(13,781) 

Old Dominion University 

478,475 

255,870 

91,893 

20,043 

(110,669) 

George Mason University 

838,591 

516,909 

177,773 

55,074 

(88,835) 

Virginia Community College System 

1,267,391 

383,842 

386,734 

95,449 

(401,366) 

Christopher New port University 

152,980 

108,828 

8,906 

23,895 

(11,351) 

Longwood University 

146,340 

92,954 

12,924 

9,266 

(31,196) 

Southwest Virginia Higher Education Center 

10,916 

1,474 

6,947 

2 

(2,493) 

Roanoke Higher Education Authority 

3,756 

1,119 

50 

5,241 

2,654 

Innovation and Entrepreneurship Investment Authority 

18,024 

6,836 

1,928 

- 

(9,260) 

Institute for Advanced Learning and Research 

9,762 

3,069 

234 

781 

(5,678) 

Southern Virginia Higher Education Center 

5,923 

2,359 

1,125 

65 

(2,374) 

New College Institute 

4,301 

535 

2,091 

2,053 

378 

Total Higher Education 

13,022,422 

8,843,459 

2,449,364 

572,236 

(1,157,363) 


Other Nonmajor Component Units 

Virginia Economic Development Partnership 

23,344 

463 

1,825 

- 

(21,056) 

Virginia Outdoors Foundation 

4,409 

1,242 

1,206 

- 

(1,961) 

Virginia Port Authority 

457,744 

449,982 

6,179 

2,065 

482 

Virginia Tourism Authority 

22,743 

365 

1,863 

- 

(20,515) 

Virginia Foundation for Healthy Youth 

9,075 

- 

43 

- 

(9,032) 

Tobacco Idemnification and Community 

Revitalization Commission 

77,661 

- 

- 

- 

(77,661) 

Hampton Roads Sanitation District Commission 

218,412 

232,989 

- 

19,519 

34,096 

Virginia Biotechnology Research Partnership Authority 

2,109 

2,456 

- 

- 

347 

Virginia Small Business Financing Authority 

11,946 

1,386 

5,815 

- 

(4,745) 

Virginia School for the Deaf and Blind Foundation 

326 

- 

- 

- 

(326) 

Science Museum of Virginia Foundation 

3,022 

- 

800 

1,311 

(911) 

Virginia Commercial Space Flight Authority 

31,749 

2,400 

8,307 

8,277 

(12,765) 

Danville Science Center, Inc. 

601 

8 

142 

- 

(451) 

Virginia Museum of Fine Arts Foundation 

20,162 

- 

4,004 

- 

(16,158) 

A. L. Philpott Manufacturing Extension Partnership 

3,882 

2,534 

1,206 

- 

(142) 

Virginia University Research Partnership 

- 

- 

- 

- 

- 

Fort Monroe Authority 

10,976 

3,792 

991 

373 

(5,820) 

Assistive Technology Loan Fund Authority 

481 

- 

2 

- 

(479) 

Virginia Sesquicentennial of the American Civil War Foundation 

50 

- 

24 

- 

(26) 

Virginia Land Conservation Foundation 

1,896 

- 

856 

- 

(1,040) 

Virginia Arts Foundation 

- 

26 

- 

- 

26 

Library of Virginia Foundation 

907 

228 

(9) 

- 

(688) 

Virginia Health Workforce Development Authority 

1,078 

- 

1,082 

- 

4 

Total Other Nonmajor 

902,573 

697,871 

34,336 

31,545 

(138,821) 

Total Nonmajor Component Units 

$ 13,924,995 

$ 9,541,330 

$ 2,483,700 

$ 603,781 

$ (1,296,184) 


270 Commonwealth of Virginia 























































































General Revenues 


Operating 





Contributions 



Net Position 


Appropriations 

Unrestricted 




to Permanent 



(Deficit) 

Net Position 

from Primary 

Grants and 

Investment 



and Term 

Change in 


July 1, 

(Deficit) 

Government 

Contributions 

Earnings 

Miscellaneous 

Endowments 

Net Position 


as restated 

June 30 


$ 152,841 

$ 29,073 

$ 264,410 

$ 

14,699 

$ 45,376 

$ 426,947 

$ 

8,963,954 

$ 9,390,901 

242,831 

4,177 

8,482 


32,336 

29,330 

98,265 


2,087,178 

2,185,443 

198,403 

1,973 

39,570 


5,012 

10,978 

263,346 


2,943,774 

3,207,120 

69,209 

20,792 

417 


1,021 

8,849 

36,287 


1,321,698 

1,357,985 

13,411 

■ 

2,086 


555 

20,767 

48,378 


575,974 

624,352 

43,141 

2,839 

1,545 


2,185 

708 

41,230 


130,242 

171,472 

53,311 

1,493 

680 


2,389 

276 

10,492 


150,999 

161,491 

25,573 

768 

447 


1,126 

7,245 

3,264 


173,200 

176,464 

89,223 

658 

1,236 


2,455 

4,024 

46,319 


697,757 

744,076 

54,903 

228 

1,946 


2,885 

807 

46,988 


291,658 

338,646 

131,525 


7,056 



4,616 

32,528 


515,459 

547,987 

139,629 

3,137 

1,121 


1,206 

4,956 

61,214 


525,822 

587,036 

417,358 

8,677 

2,318 


18,740 

9,375 

55,102 


943,424 

998,526 

30,559 

451 

2,127 


- 

1,537 

23,323 


332,932 

356,255 

29,451 

496 

2,329 


34 

2,199 

3,313 


232,720 

236,033 

2,050 

- 

- 


- 

- 

(443) 


10,391 

9,948 

1,216 

344 

6 


- 

- 

4,220 


25,147 

29,367 

5,681 

- 

182 


- 

- 

(3,397) 


26,463 

23,066 

5,817 

152 

(1,553) 


1,200 

- 

(62) 


17,472 

17,410 

2,469 

454 

- 


- 

- 

549 


(1,097) 

(548) 

1,911 

- 

74 


- 

10 

2,373 


20,625 

22,998 

1,710,512 

75,712 

334,479 


85,843 

151,053 

1,200,236 


19,985,792 

21,186,028 



21,504 

- 

5 


198 

- 

651 


(11,713) 

(11,062) 

1,753 

88 

4 


- 

- 

(116) 


8,640 

8,524 

38,418 

- 

459 


2,672 

- 

42,031 


442,554 

484,585 

20,007 

- 

7 


- 

- 

(501) 


(1,926) 

(2,427) 

- 

9,350 

- 


- 

- 

318 


8,739 

9,057 


- 

- 

10,019 


11,674 

- 

(55,968) 


582,612 

526,644 

- 

- 

1,409 


2,444 

- 

37,949 


518,876 

556,825 

- 

- 

236 


- 

- 

583 


12,325 

12,908 

- 

- 

99 


- 

- 

(4,646) 


47,095 

42,449 

- 

12 

232 


3 

- 

(79) 


5,114 

5,035 

- 

1,522 

22 


1 

1 

635 


25,790 

26,425 

15,800 

- 

- 


- 

- 

3,035 


115,210 

118,245 

- 

97 

32 


- 

- 

(322) 


1,551 

1,229 

- 

6,247 

139 


837 

2,835 

(6,100) 


239,038 

232,938 

399 

- 

- 


- 

- 

257 


528 

785 

- 

- 

- 


- 

- 

- 


4 

4 

6,476 

- 

- 


368 

- 

1,024 


1,940 

2,964 

- 

- 

141 


- 

- 

(338) 


9,847 

9,509 

- 

- 

- 


- 

- 

(26) 


329 

303 

700 

- 

- 


- 

- 

(340) 


2,527 

2,187 

- 

- 

- 


13 

- 

39 


954 

993 

- 

261 

(19) 


10 

219 

(217) 


3,169 

2,952 

- 

- 

- 


- 

- 

4 


114 

118 

105,057 

17,577 

12,785 


18,220 

3,055 

17,873 


2,013,317 

2,031,190 

$ 1,815,569 

$ 93,289 

$ 347,264 

$ 

104,063 

$ 154,108 

$ 1,218,109 

$ 

21,999,109 

$ 23,217,218 


Commonwealth of Virginia 271 









































































































272 Commonwealth of Virginia 







Commonwealth of Virginia 273 






Summary Schedule - Total Debt and Other Long-term Obligations of the Commonwealth 

Last Five Fiscal Years 
(Dollars in Thousands) 


For the Fiscal Year Ended June 30, 

2015 2014 2013 2012 2011 


Tax-Supported Debt: 


Primary Government: 

General Obligation Bonds (1): 

Section 9(b) Bonds (2) 

$ 

642,181 

$ 

706,192 

$ 

752,493 

$ 

831,148 

$ 

914,574 

Section 9(c) Bonds (2) 


33,190 


36,677 


39,499 


42,593 


45,800 

Subtotal - General Obligation Bonds 


675,371 


742,869 


791,992 


873,741 


960,374 

Nongeneral Obligation Debt: 

Section 9(d) Bonds (2) 


5,175,570 


4,748,217 


5,029,659 


5,222,270 


4,427,114 

Other Long-term Debt and Obligations (3) 


5,366,682 


3,287,907 


3,004,676 


2,742,274 


2,397,060 

Total Primary Government 


11,217,623 


8,778,993 


8,826,327 


8,838,285 


7,784,548 

Component Units: 

General Obligation Bonds (1): 

Section 9(c) Bonds (2) 


936,857 


925,086 


877,858 


906,474 


765,280 

Subtotal - General Obligation Bonds 


936,857 


925,086 


877,858 


906,474 


765,280 

Nongeneral Obligation Bonds: 

Section 9(d) Bonds (2) 


3,839,279 


3,542,518 


2,990,382 


2,747,447 


2,139,017 

Other Long-term Debt (3) 


3,756,274 


2,207,305 


1,944,418 


1,701,305 


1,472,492 

Total Component Units 


8,532,410 


6,674,909 


5,812,658 


5,355,226 


4,376,789 

Total Tax-Supported Debt 


19,750,033 


15,453,902 


14,638,985 


14,193,511 


12,161,337 

Debt Not Supported by Taxes: 

Primary Government: 

Total Primary Government (2) 


3,472,475 


3,510,428 


3,320,450 


2,915,671 


2,759,434 

Component Units: 

Section 9(d) Moral Obligation Bonds 


877,875 


831,165 


836,656 


801,384 


684,005 

Section 9(d) Other Debt 


2,038,579 


1,826,602 


1,538,395 


1,541,802 


1,450,714 

Other Long-term Debt (4) 


14,113,641 


14,351,277 


15,341,291 


15,088,830 


15,302,035 

Foundations (5) 


1,685,948 


1,669,241 


1,583,178 


1,570,447 


1,355,777 

Total Component Units 


18,716,043 


18,678,285 


19,299,520 


19,002,463 


18,792,531 

Total Debt Not Supported by Taxes 


22,188,518 


22,188,713 


22,619,970 


21,918,134 


21,551,965 

Total Debt of the Commonwealth 

$ 

41,938,551 

$ 

37,642,615 

$ 

37,258,955 

$ 

36,111,645 

$ 

33,713,302 



2015 


2014 


2013 


2012 


2011 

Section 9(b) Debt: 











Public Facilities Bonds 

$ 

642,181 

$ 

706,192 

$ 

752,493 

$ 

831,148 

$ 

914,574 

Subtotal 9(b) Debt 


642,181 


706,192 


752,493 


831,148 


914,574 

Section 9(c) Debt: 

Higher Educational Institution Bonds 


936,857 


925,086 


877,858 


906,474 


765,280 

Transportation Facilities Bonds 


17,154 


19,632 


21,961 


24,210 


26,355 

Parking Facilities Bonds 


16,036 


17,045 


17,538 


18,383 


19,445 

Subtotal 9(c) Debt 


970,047 


961,763 


917,357 


949,067 


811,080 

Total General Obligation Debt (1) 

$ 

1,612,228 

$ 

1,667,955 

$ 

1,669,850 

$ 

1,780,215 

$ 

1,725,654 


(1) Total general obligation debt for the fiscal year ended. 

(2) Beginning with fiscal year 2014, GASB Statement No. 65 removed deferrals of debt defeasance from the debt balances. Balances reported in 
prior fiscal years netted the deferrals against the debt balances. All amounts are net of unamortized discounts and premiums. 

(3) Includes capital lease obligations, notes payable, installment purchase obligations, pension liability, and the long-term portion of the liability for 
compensated absences. 

(4) Includes bonds payable, notes payable, and other debt not supported by taxes. 

(5) Foundations represent FASB reporting entities defined in Note I.B. 


274 Commonwealth of Virginia 









































































































































Tax-Supported Debt and Other Long-term Obligations 

Last Five Fiscal Years 
(Dollars in Thousands) 


For the Fiscal Year Ended June 30, 

2015 

2014 2013 2012 

2011 


Primary Government: 

General Obligation Debt (1) (4): 

Section 9(b) Debt 

Public Facilities (2) 

642,181 

706,192 

752,493 

831,148 

914,574 

Subtotal Section 9(b) Debt 

642,181 

706,192 

752,493 

831,148 

914,574 

Section 9(c) Debt 

Parking Facilities (2) 

16,036 

17,045 

17,538 

18,383 

19,445 

Transportation Facilities (2) 

17,154 

19,632 

21,961 

24,210 

26,355 

Subtotal Section 9(c) Debt 

33,190 

36,677 

39,499 

42,593 

45,800 

Subtotal General Obligation Debt 

675,371 

742,869 

791,992 

873,741 

960,374 

Nongeneral Obligation Debt: 

Section 9(d) Debt: 

Transportation Debt (2) 

2,552,123 

2,373,382 

2,495,312 

2,655,481 

2,008,601 

Virginia Public Building Authority (2) 

2,623,447 

2,374,835 

2,534,347 

2,566,789 

2,418,513 

Subtotal Section 9(d) Debt 

5,175,570 

4,748,217 

5,029,659 

5,222,270 

4,427,114 

Other Long-term Debt: 

Transportation Notes Payable (3) 

- 

- 

8,000 

8,000 

8,000 

Regional Jail Construction 

- 

- 

837 

2,748 

4,617 

Capital Lease Obligations 

57,948 

60,916 

71,835 

77,400 

87,219 

Installment Purchase Obligations 

113,373 

113,936 

106,367 

114,959 

101,014 

Economic Development Authority Obligations 

51,249 

57,621 

77,472 

81,747 

85,827 

Tax Refund Note (3) 

- 

- 

20,319 

40,639 

60,959 

Aviation Notes Payable (3) 

307 

529 

764 

1,050 

1,336 

Subtotal Other Long-term Debt 

222,877 

233,002 

285,594 

326,543 

348,972 

Other Long-term Obligations: 

Compensated Absences 

311,406 

321,520 

317,528 

315,176 

311,523 

Net Ftension Liability 

4,133,117 

2,114,803 

1,875,011 

1,660,768 

1,405,714 

OPEB Liability 

654,173 

568,764 

493,443 

406,969 

301,771 

Rcllution Remediation Liability 

11,954 

13,186 

3,494 

5,171 

4,772 

Other Liabilities 

33,155 

36,632 

29,606 

27,647 

24,308 

Subtotal Other Long-term Obligations 

5,143,805 

3,054,905 

2,719,082 

2,415,731 

2,048,088 

Total Primary Government 

11,217,623 

8,778,993 

8,826,327 

8,838,285 

7,784,548 


Component Units: 


General Obligation Bonds (1) (4): 


Section 9(c) Debt 


Higher Educational Institutions (2) 

936,857 

925,086 

877,858 

906,474 

765,280 

Subtotal General Obligation Debt 

936,857 

925,086 

877,858 

906,474 

765,280 

Nongeneral Obligation Debt: 

Section 9(d) Debt: 

Virginia Part Authority (2) 

288,446 

222,044 

228,619 

237,321 

186,011 

Innovation & Entrepreneurship Investment Authority 

- 

- 

1,220 

2,375 

3,465 

Virginia College Building Authority 

3,520,214 

3,286,119 

2,725,259 

2,470,589 

1,909,586 

Virginia Biotechnology Research Partnership Authority 

30,619 

34,355 

35,284 

37,162 

39,955 

Subtotal Section 9(d) Debt 

3,839,279 

3,542,518 

2,990,382 

2,747,447 

2,139,017 

Other Long-term Debt: 

Capital Lease Obligations 

77,456 

82,189 

85,631 

91,166 

119,519 

Installment Purchase Obligations (3) 

63,812 

76,526 

86,315 

100,161 

118,277 

Subtotal Other Long-term Debt 

141,268 

158,715 

171,946 

191,327 

237,796 

Other Long-term Obligations: 

Compensated Absences 

288,320 

280,237 

265,246 

253,845 

248,149 

Net Pension Liability 

2,496,179 

1,066,638 

924,512 

785,472 

644,481 

OPEB Liability 

830,507 

701,715 

582,714 

470,661 

342,066 

Subtotal Other Long-term Obligations 

3,615,006 

2,048,590 

1,772,472 

1,509,978 

1,234,696 

Total Component Units 

8,532,410 

6,674,909 

5,812,658 

5,355,226 

4,376,789 

Total Tax-Supported Debt 

$ 19,750,033 

$ 15,453,902 

$ 14,638,985 

$ 14,193,511 

$ 12,161,337 


(1) The general obligation debt is the only debt or long-term obligation that is backed by the full faith and credit of the Commonwealth. 

(2) Beginning with fiscal year 2014, GASB Statement No. 65 removed deferrals of debt defeasance from the debt balances. Balances reported in 
prior fiscal years netted the deferrals against the debt balances. All amounts are net of unamortized discounts and premiums. 

(3) Reflected as Notes Payable in Note 26, Long-term Liabilities. 

(4) See Note 1 on previous page. 


Commonwealth of Virginia 275 
















































































































































Debt and Other Long-term Obligations Not Supported by Taxes 

Last Five Fiscal Years 
(Dollars in Thousands) 


For the Fiscal Year Ended June 30, 

2015 

2014 2013 2012 

2011 


Primary Government: 

Other Long-term Debt & Obligations: 

Federal Reimbursement Anticipation Notes Payable (1) 

$ 

30,624 $ 

60,905 $ 

89,836 $ 

182,450 $ 

274,650 

Grant Anticipation Notes (GARVEES) (1) 


705,574 

746,812 

473,733 

298,728 

- 

Route 460 Funding Corporation of Virginia 


320,110 

317,305 

314,662 

- 

- 

Net Pension Liability 


125,294 

57,400 

48,798 

42,249 

34,054 

OPEB Liability 


22,051 

18,709 

15,688 

12,751 

9,099 

Capital Lease Obligations 


5,708 

6,072 

6,453 

449 

918 

Compensated Absences 


10,123 

10,102 

9,727 

9,267 

9,044 

Tuition Benefits Payable 


2,116,769 

2,140,430 

2,189,079 

2,175,296 

2,215,261 

Lottery Prizes Payable 


136,222 

152,693 

172,474 

194,481 

216,408 

Total Primary Government 


3,472,475 

3,510,428 

3,320,450 

2,915,671 

2,759,434 


Component Units: 


Section 9(d) Moral Obligation Debt: (1) 

Virginia Resources Authority 

877,875 

831,165 

836,656 

801,384 

684,005 

Subtotal Section 9(d) Moral Obligation Debt 

877,875 

831,165 

836,656 

801,384 

684,005 


Section 9(d) Other Debt: 

Higher Educational Institutions (1): 

Auxiliary Enterprise Revenue Bonds 

1,531,950 

1,315,358 

1,269,149 

1,205,869 

1,232,954 

Teaching Hospitals Revenue Bonds (4) 

506,629 

511,244 

269,246 

335,933 

217,760 

Subtotal Section 9(d) Other Debt 

2,038,579 

1,826,602 

1,538,395 

1,541,802 

1,450,714 


Other Long-term Debt: 

Virginia Housing Development Authority (1) (2) 

4,498,847 

4,931,982 

5,742,689 

5,945,174 

6,438,200 

Hampton Roads Sanitation District 

748,397 

766,353 

790,503 

639,286 

560,996 

Virginia Biotechnology Research Partnership Authority 

- 

- 

- 

- 

1,125 

Virginia Public School Authority (1) (2) 

3,551,741 

3,523,633 

3,483,366 

3,378,084 

3,215,448 

Virginia Port Authority 

256,656 

272,831 

276,816 

281,978 

284,558 

Virginia Resources Authority 

2,631,153 

2,536,711 

2,582,923 

2,478,243 

2,060,398 

Notes Payable 

2,083,619 

2,067,038 

2,179,181 

2,070,152 

2,403,627 

Net Pension Liability 

41,516 

- 

- 

- 

- 

Other Long-term Debt 

301,712 

252,729 

285,813 

295,913 

337,683 

Foundations (5) 

1,685,948 

1,669,241 

1,583,178 

1,570,447 

1,355,777 

Subtotal Other Long-term Debt 

15,799,589 

16,020,518 

16,924,469 

16,659,277 

16,657,812 


Subtotal Section 9(d) and Other Debt 

17,838,168 

17,847,120 

18,462,864 

18,201,079 

18,108,526 

Total Component Units 

18,716,043 

18,678,285 

19,299,520 

19,002,463 

18,792,531 

Total Debt Not Supported by Taxes (3) 

$ 22,188,518 $ 

22,188,713 $ 

22,619,970 $ 

21,918,134 $ 

21,551,965 


(1) Beginning with fiscal year 2014, GASB Statement No. 65 removed deferrals of debt defeasance from the debt balances. Balances reported in 
prior fiscal years netted the deferrals against the debt balances. All amounts are net of unamortized discounts and premiums. 

(2) Includes notes payable and/or installment purchase obligations. 

(3) These amounts are not backed by the full faith and credit of the Commonwealth. 

(4) Includes the Virginia Commonwealth University Health System Authority. 

(5) Foundations represent FASB reporting entities defined in Note I.B. 


276 Commonwealth of Virginia 



























































































Authorized and Unissued Tax-Supported Debt 


For the Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 

As of 

June 30, 

2014 

as restated (1) 

New Debt 

Authorized 

Debt 

Issued 

Other 

Adjust¬ 

ments 

As of 
June 30, 

2015 

Section 9(c) Debt (Primary Government): 






Higher Educational Institution Bonds 

651,767 

67,500 

47,620 

(4,085) 

667,562 

Parking Facilities Bonds 

226 

- 

- 

- 

226 

Subtotal Section 9(c) Debt 

651,993 

67,500 

47,620 

(4,085) 

667,788 


Section 9(d) Debt: 

Primary Government: 

Transportation Contract Revenue Bonds 

(Northern Virginia Transportation District 

Fund Program) 

24,700 

- 

- 

- 

24,700 

U.S. Route 58 Corridor Development Program 

595,700 

- 

- 

- 

595,700 

Transportation Capital Projects Revenue Bonds 

1,487,335 


274,980 

(25,020) 

1,187,335 


Component Units: 

Virginia Public Building Authority 

(Projects) 

1,020,536 

77,860 

395,590 

(14,043) 

688,763 

Virginia Public Building Authority 

(Jails) 

95,818 

21,321 

32,700 

(140) 

84,299 

Virginia College Building Authority 

(21st Century) 

1,400,630 

39,387 

380,015 

(54,346) 

1,005,656 

Virginia College Building Authority 

(Equipment FVogram) 

128,436 

10,000 

- 

- 

138,436 

Virginia Fbrt Authority 

64,999 

- 

58,680 

(6,319) 

- 

Subtotal Section 9(d) Debt 

4,818,154 

148,568 

1,141,965 

(99,868) 

3,724,889 


Total Authorized and Unissued 


Tax-Supported Debt 

$ 5,470,147 

$ 

216,068 

$ 1,189,585 

$ (103,953) $ 4,392,677 


(1) Virginia Public Building Authority (Projects) has been restated by $31.7 million for adjustments made for payments made in fiscal year 2014 
with proceeds from previous bond issuances. 


Commonwealth of Virginia 277 




























































Tax-Supported Debt-Annual Debt Service Requirements [1] 


For the Fiscal Year Endec 
(Dollars in Thousands) 

Fiscal Year 

Ending 

June 30 

June 30, 2015 

General Obligation Debt 

Sections 9(a), 9(b) and 9(c) 

Other Tax-Supported Debt 
Section 9(d) [1] [2] 


Principal 

Interest 

Total 

Principal 

Interest 

Total 

2016 

115,690 

64,853 

180,543 

508,312 

359,028 

867,340 

2017 

108,735 

59,583 

168,318 

540,059 

347,443 

887,502 

2018 

101,990 

54,467 

156,457 

516,540 

322,974 

839,514 

2019 

101,445 

49,855 

151,300 

484,296 

300,014 

784,310 

2020 

101,385 

45,200 

146,585 

466,073 

277,792 

743,865 

2021 

103,520 

40,590 

144,110 

468,211 

256,633 

724,844 

2022 

98,740 

35,804 

134,544 

444,940 

235,445 

680,385 

2023 

99,145 

31,295 

130,440 

441,996 

215,830 

657,826 

2024 

98,770 

26,819 

125,589 

438,516 

196,200 

634,716 

2025 

90,545 

22,366 

112,911 

443,164 

176,884 

620,048 

2026 

85,160 

18,460 

103,620 

439,919 

157,550 

597,469 

2027 

76,825 

14,777 

91,602 

409,206 

138,990 

548,196 

2028 

61,410 

11,316 

72,726 

409,420 

120,853 

530,273 

2029 

47,000 

8,569 

55,569 

415,550 

102,052 

517,602 

2030 

37,290 

6,567 

43,857 

395,985 

83,394 

479,379 

2031 

32,890 

5,029 

37,919 

340,715 

65,076 

405,791 

2032 

22,855 

3,699 

26,554 

311,845 

50,556 

362,401 

2033 

22,440 

2,794 

25,234 

220,655 

37,960 

258,615 

2034 

20,080 

1,896 

21,976 

236,310 

28,498 

264,808 

2035 

12,805 

1,061 

13,866 

189,835 

18,264 

208,099 

2036 

5,210 

545 

5,755 

118,925 

10,120 

129,045 

2037 

1,895 

328 

2,223 

64,180 

5,402 

69,582 

2038 

1,675 

244 

1,919 

24,270 

2,789 

27,059 

2039 

1,730 

165 

1,895 

25,315 

1,734 

27,049 

2040 

1,785 

84 

1,869 

8,180 

634 

8,814 

2041 

- 

- 

- 

8,590 

215 

8,805 

Subtotal 

1,451,015 

506,366 

1,957,381 

8,371,007 

3,512,330 

11,883,337 


Add 

Accretion on 
Capital Appreciation 

Bonds - - - 23,139 - 23,139 


Add 

Unamortized 

Premium 161,213 - 161,213 672,354 - 672,354 


Less 

Unamortized 

Discount __ (96) __ (96) 


Total 


1,612,228 $ 506,366 $ 2,118,594 $ 9,066,404 $ 3,512,330 $ 12,578,734 


[1] Includes Fairfax County Economic Development Authority and the Virginia Aviation Board. Does not include other capital leases, installment 
purchase obligations, regional jail reimbursements under the original treasury board program, compensated absences, pension liability, 
pollution remediation liability and uninsured employers’ fund. 

[2] Includes principal amount of $5,227,126 (dollars in thousands) for the primary government. 


278 Commonwealth of Virginia 






































































Total 


Principal 

Interest 

Total 

624,002 

423,881 

1,047,883 

648,794 

407,026 

1,055,820 

618,530 

377,441 

995,971 

585,741 

349,869 

935,610 

567,458 

322,992 

890,450 

571,731 

297,223 

868,954 

543,680 

271,249 

814,929 

541,141 

247,125 

788,266 

537,286 

223,019 

760,305 

533,709 

199,250 

732,959 

525,079 

176,010 

701,089 

486,031 

153,767 

639,798 

470,830 

132,169 

602,999 

462,550 

110,621 

573,171 

433,275 

89,961 

523,236 

373,605 

70,105 

443,710 

334,700 

54,255 

388,955 

243,095 

40,754 

283,849 

256,390 

30,394 

286,784 

202,640 

19,325 

221,965 

124,135 

10,665 

134,800 

66,075 

5,730 

71,805 

25,945 

3,033 

28,978 

27,045 

1,899 

28,944 

9,965 

718 

10,683 

8,590 

215 

8,805 

9,822,022 

4,018,696 

13,840,718 


23,139 - 23,139 


833,567 - 833,567 


(96) __ _ (96) 


$ 10,678,632 $ 4,018,696 $ 14,697,328 


Commonwealth of Virginia 279 



















































Tax-Supported Debt - Detail of Long-term Indebtedness 

For the Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 




Outstanding 

Issued 





June 30, 

(Retired) 

Outstanding 



Amount 

2014 

During 

June 30, 


Series 

Issued 

as restated (1) 

Year 

2015 

Maturity 


General Obligation Debt 


Section 9(b) Debt (Primary Government): 

Public Facilities Bonds 

Series 2005 

118,110 

5,950 

(5,950) 

- 



Series 2006 Refunding 

56,580 

7,555 

(7,555) 

- 



Series 2006 

117,910 

11,840 

(5,920) 

5,920 

06/01/16 


Series 2007 

200,465 

48,990 

(22,240) 

26,750 

06/01/16-18 


Series 2008 

198,165 

138,850 

(109,085) 

29,765 

06/01/16-18 


Series 2009 

80,000 

60,000 

(4,000) 

56,000 

06/01/16-29 


Series 2009 Refunding 

121,765 

121,295 


121,295 

06/01/16-22 


Series 2009 Taxable BABs 

45,000 

35,540 

(2,365) 

33,175 

06/01/16-29 


Series 2012A Refunding 

71,065 

62,050 

(12,995) 

49,055 

06/01/16-24 


Series 2013 Refunding 

128,250 

128,250 

- 

128,250 

06/01/16-17,19-27 


Series 2014B Refunding 

22,855 

22,855 

(8,265) 

14,590 

06/01/16-18 


Series 2015 

102,520 

- 

102,520 

102,520 

06/01/18-28 


Unamortized Premium 

- 

63,017 

11,844 

74,861 



Total Public Facilities Bonds 

1,262,685 

706,192 

(64,011) 

642,181 




Total Section 9(b) Debt 1,262,685 _ 706,192 _ (64,011) _ 642,181 


Section 9(c) Debt 

Higher Educational Institution bonds (Component Units) 
Series 2005 Bonds 


The College of William and Mary 



Renovate Dining 

9,555 

425 

(425) 

- 


Renovate Dorms 

5,800 

260 

(260) 

- 

George Mason University 


Student Housing 

25,800 

885 

(885) 

- 

Longwood University 


Renovate Housing Facilities 

3,915 

180 

(180) 

- 

Old Dominion University 


Renovate Housing - Phase 1 

4,735 

215 

(215) 

- 

University of Mary Washington 


Seacobeck Dining Hall 

4,730 

215 

(215) 

- 


Subtotal Series 2005 Bonds 

54,535 

2,180 

(2,180) 

- 


Series 2006 Refunding Bonds 


Christopher New port University 



DorrrVDining - '96 Refunding, Refunded Portion 

1,725 

1,090 

(140) 

950 06/01/16-21 

The College of William and Mary 


Dorm, Phase II -'96 Refunding, Refunded Portion 

1,525 

265 

(265) 

- 


Subtotal Series 2006 Refunding Bonds 

3,250 

1,355 

(405) 

950 


Series 2006 Bonds 


The College of William and Mary 



Renovate Dormitories 

4,515 

410 

(200) 

210 

06/01/16 


George Mason University 


Construct Student Housing VII 

39,080 

14,825 

(13,475) 

1,350 

06/01/16 



Renovate Housing Facilities 

2,420 

635 

(310) 

325 

06/01/16 


James Madison University 


Renovate Residence Hall Phase III 

6,230 

560 

(275) 

285 

06/01/16 


Longwood University 


Renovate Housing Facilities 

5,900 

530 

(260) 

270 

06/01/16 


Old Dominion University 


Construct Residence Hall Phase II 

8,785 

790 

(385) 

405 

06/01/16 


Virginia Polytechnic Institute and State University 


Parking Projects 

685 

60 

(30) 

30 

06/01/16 


Virginia State University 


Construct Dining Hall 

4,330 

410 

(200) 

210 

06/01/16 



Construct Residence Halls 

16,780 

1,590 

(775) 

815 

06/01/16 



Subtotal Series 2006 Bonds 

88,725 

19,810 

(15,910) 

3,900 





280 Commonwealth of Virginia 




























































































Series 

Amount 

Issued 

Outstanding 

June 30, 

2014 

as restated (1) 

Issued 

(Retired) 

During 

Year 

Outstanding 
June 30, 

2015 

Maturity 


General Obligation Debt (continued) 

Section 9(c) Debt (continued) 

Higher Educational Institution bonds (Component Units) (continued) 

Series 2007 Bonds 

George Mason University 

1 

Construct Student Housing VII and Entrance Road 

15,495 

8,595 

(7,530) 

1,065 

06/01/16-17 

■ 


Construct Student Housing, VII 

2,010 

1,085 

(950) 

135 

06/01/16-17 


1 

Renovate Student Housing, President's Park 1 

3,130 

1,200 

(380) 

820 

06/01/16-17 

■ 

James Madison University 

1 

Construct Dining Hall 

20,840 

6,770 

(4,860) 

1,910 

06/01/16-17 

■ 


Renovate Bluestone Residence Hall, Phase III 

2,280 

740 

(535) 

205 

06/01/16-17 


Longwood University 


Renovate Cox Hall 

6,250 

2,025 

(1,450) 

575 

06/01/16-17 


Old Dominion University 


Construct Residence Hall, Phase II 

16,115 

5,235 

(3,760) 

1,475 

06/01/16-17 


Virginia Commonwealth University 


Monroe Park Housing 

15,525 

10,370 

(9,610) 

760 

06/01/16-17 


Virginia Polytechnic Institute and State University 


Construct New Residence Hall 

13,130 

2,605 

(605) 

2,000 

06/01/16-18 


1 

Improve Residence and Dining Halls 

5,995 

1,190 

(275) 

915 

06/01/16-18 

■ 

Virginia State University 

1 

Construct Residence Halls 

2,020 

370 

(85) 

285 

06/01/16-18 

■ 


Construct Two Residence Halls 

26,160 

9,265 

(6,650) 

2,615 

06/01/16-17 



Subtotal Series 2007 Bonds 

128,950 

49,450 

(36,690) 

12,760 




Series 2008 Bonds 

The College of William and Mary 


Renovate Graduate Student Residence Halls 

2,395 

1,960 

(1,630) 

330 

06/01/16-18 


George Mason University 

1 

Renovate Commonwealth and Dominion Phase II 

1,530 

760 

(175) 

585 

06/01/16-18 

■ 


Renovate President's Park Phase 1 

3,095 

1,540 

(355) 

1,185 

06/01/16-18 


1 

Renovate President's Park Phase II 

3,120 

2,640 

(2,195) 

445 

06/01/16-18 

■ 


Student Housing VII 

1,955 

1,680 

(1,495) 

185 

06/01/16-18 


1 

Student Housing VII and Entrance Road 

23,870 

21,390 

(19,070) 

2,320 

06/01/16-18 

■ 

James Madison University 


Construct New Residence Hall 

19,430 

15,405 

(12,805) 

2,600 

06/01/16-18 


Longwood University 


Renovate Cox Hall 

4,630 

3,665 

(3,050) 

615 

06/01/16-18 


Old Dominion University 


Quad Housing Phase II 

39,960 

31,695 

(26,340) 

5,355 

06/01/16-18 


Virginia Polytechnic Institute and State University 

1 

New Residence Hall 

17,185 

14,060 

(11,685) 

2,375 

06/01/16-18 

■ 


Parking Auxiliary Projects 

1,545 

1,225 

(1,020) 

205 

06/01/16-18 



Subtotal Series 2008 Bonds 

118,715 

96,020 

(79,820) 

16,200 




Series 2009 Bonds 

Christopher New port University 


Residence Hall '01 Refunded Partion 

1,878 

1,878 

(12) 

1,866 

06/01/16-21 


The College of William and Mary 

1 

Dining Commons Hall Renovation '05 Refunded Partion 

3,200 

3,200 

- 

3,200 

06/01/17-22 

■ 


Dormitory Renovations '06B Refunded Portion 

1,270 

1,270 

- 

1,270 

06/01/18-22 


1 

Dormitory Renovations '02 Refunded 

2,582 

2,536 

(277) 

2,259 

06/01/16-22 

■ 


Dormitory Renovations '05 Refunded 

1,940 

1,940 

- 

1,940 

06/01/17-22 


1 

Dormitory Renovations '01 Refunded Partion 

384 

384 

(2) 

382 

06/01/16-21 

■ 

George Mason University 

1 

Housing Building V '01 Refunded Partion 

6,267 

6,267 

(33) 

6,234 

06/01/16-24 

■ 


Housing Building V '02 Refunded Partion 

4,448 

4,367 

(478) 

3,889 

06/01/16-22 


1 

Housing VIII 

7,910 

7,485 

(225) 

7,260 

06/01/16-34 

■ 


Renovate Resident Park Phase 1 

1,790 

1,080 

(195) 

885 

06/01/16-19 


1 

Student Housing Construction VII '05 Refunded 

6,630 

6,630 

- 

6,630 

06/01/17-22 

■ 


Student Housing VIIC 

8,255 

7,440 

(225) 

7,215 

06/01/16-34 


1 

Student Housing Construction VII '06B Refunded 

8,230 

8,230 

- 

8,230 

06/01/18-22 

■ 


Continued on next page 


Commonwealth of Virginia 281 



















































































Tax-Supported Debt - Detail of Long-term Indebtedness (Continued from previous page) 


For the Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 


Outstanding 

Issued 





June 30, 

(Retired) 

Outstanding 



Amount 

2014 

During 

June 30, 


Series 

Issued 

as restated (1) 

Year 

2015 

Maturity 


General Obligation Debt (continued) 


Section 9(c) Debt (continued) 

Higher Educational Institution bonds (Component Units) (continued) 

Series 2009 Bonds (continued) 

James Madison University 


Bluestone Dorm Phase II '01 Refunded Portion 

458 

458 

(3) 

455 

06/01/16-21 



Renovate Bluestone Res Hall III '06B Refunded Portion 

1,750 

1,750 

- 

1,750 

06/01/18-22 



Renovate Bluestone Dorms '02 Refunded Portion 

1,048 

1,029 

(113) 

916 

06/01/16-22 



Renovate Bluestone Dorms II '02 Refunded Portion 

1,089 

1,069 

(118) 

951 

06/01/16-22 


Longwood University 


Housing Facilities Renovations '05 Refunded Portion 

1,340 

1,340 

- 

1,340 

06/01/17-22 



Renovate Housing Facilities '06B Refunded Portion 

1,655 

1,655 

- 

1,655 

06/01/18-22 


Old Dominion University 


Construct Residence Hall Ph II '06B Refunded Portion 

2,465 

2,465 

- 

2,465 

06/01/18-22 



Housing Renovations '02 Refunded Portion 

1,319 

1,296 

(144) 

1,152 

06/01/16-22 



Housing Renovations Ph 1 '05 Refunded Portion 

1,625 

1,625 

- 

1,625 

06/01/17-22 


University of Mary Washington 


Residence Hall Renovation '01 Refunded Portion 

153 

153 

(1) 

152 

06/01/16-21 



Seacobeck Dining Hall '05 Refunded Portion 

1,625 

1,625 

- 

1,625 

06/01/17-22 


University of Virginia 


Residence Hall Monroe Lane '01 Refunded Portion 

368 

368 

(2) 

366 

06/01/16-21 


Virginia Military Institute 


Crozet Hall & Parking '04A Refunded Portion 

4,242 

4,242 

- 

4,242 

06/01/16-22 


Virginia Polytechnic Institute and State University 


Parking Aux Pojects '06B Refunded Portion 

190 

190 

- 

190 

06/01/18-22 



Improve Residence and Dining Halls 

3,720 

3,300 

(155) 

3,145 

06/01/16-29 



Parking Auxiliary Poject '02 Refunded Portion 

276 

251 

(82) 

169 

06/01/16-17 



Parking Structure 

24,590 

22,695 

(685) 

22,010 

06/01/16-34 



Renovate Dietrick Servery Ph II '04A Refunded Portion 

1,891 

1,891 

- 

1,891 

06/01/16-22 



Renovate Ambler Johnston Hall 

39,005 

34,584 

(1,605) 

32,979 

06/01/16-29 


Virginia State University 


Construct Residence Hall '06B Refunded Portion 

4,965 

4,965 

- 

4,965 

06/01/18-22 



Construct Dining Hall '06B Refunded Portion 

1,280 

1,280 

- 

1,280 

06/01/18-22 



Subtotal Series 2009 Bonds 

149,838 

140,938 

(4,355) 

136,583 




Series 2010 Bonds 

Christopher New port University 



Construct Residence Hall 

34,480 

32,805 

(900) 

31,905 

06/01/16-40 


The College of William and Mary 


Construct New Dormitory 

2,010 

1,720 

(90) 

1,630 

06/01/16-30 



Renovate Residence Halls 

4,440 

3,790 

(200) 

3,590 

06/01/16-30 


George Mason University 


Housing VIII 

39,420 

36,890 

(1,355) 

35,535 

06/01/16-35 



Renovate Commons 

1,325 

1,210 

(65) 

1,145 

06/01/16-30 



Renovate Student Housing, Resident's Park II 

2,790 

1,950 

(305) 

1,645 

06/01/16-20 



Smithsonian CRC Housing 

5,415 

5,065 

(185) 

4,880 

06/01/16-35 


James Madison University 


Renovate Bluestone Dormitories, Phase IV 

14,890 

12,720 

(660) 

12,060 

06/01/16-30 


Old Dominion University 


Renovate Student Housing, Phase 1 

1,975 

1,685 

(90) 

1,595 

06/01/16-30 


Virginia Commonwealth University 


Construct West Grace Housing and Parking Phase 1 

29,130 

27,255 

(1,005) 

26,250 

06/01/16-35 


Virginia Polytechnic Institute and State University 


Construct Academic and Student Affairs Building 

34,650 

30,295 

(1,580) 

28,715 

06/01/16-30 



Parking Auxiliary Pojects 

745 

635 

(35) 

600 

06/01/16-30 



Subtotal Series 2010 Bonds 

171,270 

156,020 

(6,470) 

149,550 




Series 2011 Bonds 

Christopher New port University 


Renovate Santoro Residence Hall 

4,100 

3,200 

(425) 

2,775 

06/01/16-21 


The College of William and Mary 


Construct New Dormitory 

14,400 

13,325 

(590) 

12,735 

06/01/16-31 



282 Commonwealth of Virginia 





















































































Outstanding 

Issued 





June 30, 

(Retired) 

Outstanding 



Amount 

2014 

During 

June 30, 


Series 

Issued 

as restated (1) 

Year 

2015 

Maturity 


General Obligation Debt (continued) 


Section 9(c) Debt (continued) 

Higher Educational Institution bonds (Component Units) (continued) 

Series 2011 Bonds (continued) 

George Mason University 


Housing VIII 

20,230 

19,170 

(565) 

18,605 

06/01/16-36 



Presidential Park Housing Renovation 

2,700 

2,225 

(295) 

1,930 

06/01/16-21 



Renovate Commons 

14,350 

13,805 

(605) 

13,200 

06/01/16-31 



Smithsonian CRC Housing 

4,070 

3,960 

(115) 

3,845 

06/01/16-36 



Student Housing Vll-C 

1,045 

1,005 

(30) 

975 

06/01/16-36 


Virginia Commonwealth University 


West Grace Housing - North 

25,830 

25,125 

(735) 

24,390 

06/01/16-36 


Virginia Fblytechnic Institute and State University 


Renovate Ambler Johnston Hall 

18,860 

17,455 

(770) 

16,685 

06/01/16-31 


Virginia State University 


Construct Gateway Residence Hall Phase II 

34,735 

31,460 

(1,385) 

30,075 

06/01/16-31 



Construct Quad Phase II 

28,555 

27,470 

(1,200) 

26,270 

06/01/16-31 



Subtotal Series 2011 Bonds 

168,875 

158,200 

(6,715) 

151,485 




Series 2012 Bonds 

The College of William and Mary 


Dining Commons Hall Renovation 2005 Refunding 

1,289 

1,289 

- 

1,289 

06/01/23-24 



Dorm Renovation - 2005 Refunding 

780 

780 

- 

780 

06/01/23-24 



Dorm Repairs - 2002 Refunding (96 Ref) 

429 

258 

(128) 

130 

06/01/16 



Underground Utilities - 2002 Refunding (95 Ref) 

388 

232 

(112) 

120 

06/01/16 


George Mason University 


Student Housing Construction, VII - 2005 Refunding 

2,674 

2,674 

- 

2,674 

06/01/23-24 



University Center - 2002 Refunding (93A Ref) 

3,956 

1,658 

(1,658) 

- 



Longwood University 


Dining Hall - 2002 Refunding (96 Ref) 

1,472 

879 

(433) 

446 

06/01/16 



Housing Facilities Renovation - 2005 Refunding 

545 

545 

- 

545 

06/01/23-24 


Old Dominion University 


Housing Renovation, Phase 1 - 2005 Refunding 

655 

655 

- 

655 

06/01/23-24 


University of Mary Washington 


Seacobeck Dining Hall - 2005 Refunding 

655 

655 

- 

655 

06/01/23-24 


University of Virginia 


Newcomb Hall - 2002 Refunding (95 Ref) 

2,752 

1,636 

(804) 

832 

06/01/16 



Student Residence - 2002 Refunding (95 Ref) 

1,241 

737 

(361) 

376 

06/01/16 


Virginia Commonwealth University 


Visitors Deck - 2002 Refunding (96 Ref) 

871 

520 

(255) 

265 

06/01/16 


Virginia Military Institute 


Crozet Hall & Parking - 2004A Refunding 

3,019 

3,019 

(530) 

2,489 

06/01/23-25 


Virginia Fblytechnic Institute and State University 


Renovate Dietrick Servery -2004A Refunding 

942 

942 

(237) 

705 

06/01/23-24 


Virginia State University 


Jones Hall - 2002 Refunding (96 Ref) 

646 

384 

(189) 

195 

06/01/16 



Subtotal Series 2012 Bonds 

22,314 

16,863 

(4,707) 

12,156 




Series 2013 Bonds 

The College of William and Mary 


Construct New Dormitory 

8,770 

8,475 

(300) 

8,175 

06/01/16-33 



Dining Commons Hall Renovation - 2005A Ref Pcrtion 

1,831 

1,831 


1,831 

06/01/16, 25-26 



Dorm Renovations - 2005A Ref Portion 

1,113 

1,113 

- 

1,113 

06/01/16, 25-26 



Dorm Renovations - 2006B Ref Portion 

1,412 

1,412 


1,412 

06/01/17, 23-26 



Renovate Dormitory 

4,660 

4,505 

(160) 

4,345 

06/01/16-33 


George Mason University 


Construct Student Housing VII & Entrance Rd - 2007B Ref Portion 

4,579 

4,579 

- 

4,579 

06/01/19-25 



Construct Student Housing VII - 2007B Refunded Portion 

584 

584 


584 

06/01/19-25 



Construct Student Housing VII - 2006B Refunded Pcrtion 

9,187 

9,187 

- 

9,187 

06/01/17, 23-26 



Student Housing Construction, VII - 2005A Ref Portion 

10,504 

10,504 

- 

10,504 

06/01/16, 25-30 


James Madison University 


Construct Dining Hall - 2007B Refunded Portion 

8,207 

8,207 

- 

8,207 

06/01/19-25 



Renovate Bluestone Residence Hall, Ph 3 -2007B Ref Fbrtion 

893 

893 

- 

893 

06/01/19-25 



Renovate Residence Hall - 2006B Refunded Fbrtion 

1,953 

1,953 


1,953 

06/01/17, 23-26 



Continued on next page 


Commonwealth of Virginia 283 

















































































Tax-Supported Debt - Detail of Long-term Indebtedness (Continued from previous page) 


For the Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 


Outstanding 

Issued 





June 30, 

(Retired) 

Outstanding 



Amount 

2014 

During 

June 30, 


Series 

Issued 

as restated (1) 

Year 

2015 

Maturity 


General Obligation Debt (continued) 


Section 9(c) Debt (continued) 

Higher Educational Institution bonds (Component Units) (continued) 

Series 2013 Bonds (continued) 

Longwood University 


Housing Facility Renovation - 2005A Refunded Fbrtion 

472 

472 

- 

472 

06/01/16, 25 



Renovate Cox Hall - 2007B Refunded Portion 

2,461 

2,461 

- 

2,461 

06/01/19-25 



Renovate Housing Facilities - 2006B Refunded Portion 

1,852 

1,852 

- 

1,852 

06/01/17, 23-26 


Old Dominion University 


Construct Residence Hall, Ph II- 2007B Refunded Fbrtion 

6,344 

6,344 

- 

6,344 

06/01/19-25 



Construct Residence Hall, Ph II - 2006B Refunded Portion 

2,761 

2,761 

- 

2,761 

06/01/17, 23-26 



Housing Renovations, Ph 1- 2005A Refunded Portion 

570 

570 

- 

570 

06/01/16, 25 


Radford University 


Washington Hall 

5,040 

4,870 

(170) 

4,700 

06/01/16-33 


Univerisity of Mary Washington 


Seacobeck Dining Hall - 2005A Refunded Fbrtion 

565 

565 

- 

565 

06/01/16, 25 


Virginia Commonwealth University 


Monroe Park Housing - 2007B Refunded Fbrtion 

3,252 

3,252 

- 

3,252 

06/01/19-25 


Virginia Polytechnic Institute and State University 


Construct New Residence Hall - 2007A Refunded Fbrtion 

7,842 

7,842 

- 

7,842 

06/01/19-27 



Improve Residence and Dining Halls - 2007A Refunded Fbrtion 

3,576 

3,576 

- 

3,576 

06/01/19-27 



Parking Projects - 2006B Refunded Fbrtion 

217 

217 

- 

217 

06/01/17, 23-26 


Virginia State University 


Construct Dining Hall - 2006B Refunded Fbrtion 

1,431 

1,431 

- 

1,431 

06/01/17, 23-26 



Construct Residence Hall - 2007B Refunded Portion 

1,132 

1,132 

- 

1,132 

06/01/19-27 



Construct Residence Halls - 2006B Refunded Fbrtion 

5,541 

5,541 


5,541 

06/01/17, 23-26 



Construct Two Residence Halls - 2007B Refunded Fbrtion 

11,231 

11,231 

- 

11,231 

06/01/19-25 



Subtotal Series 2013 Bonds 

107,980 

107,360 

(630) 

106,730 




Series 2014 Bonds 

Christopher Newport University 


New Residence Hall - 2004B Refunded Fbrtion 

8,147 

8,147 

(775) 

7,372 

06/01/16-20 



Residence Hall II - 2004B Refunding Fbrtion 

4,210 

4,210 

(512) 

3,698 

06/01/16-19 


College Of William and Mary 


Renovate Dormitories - 2004B Refunding Fbrtion 

1,666 

1,666 

(160) 

1,506 

06/01/16-20 



Dormitory Renovation Phase II - 2004B Refunding Fbrtion 

120 

120 

(9) 

111 

06/01/16-17 



Dormitory Repairs - 2004B Refunding Pcrtion 

650 

650 

(158) 

492 

06/01/16-17 



Utility System - 2004B Refunding Portion 

311 

311 

(26) 

285 

06/01/16-17 



Dormitory Renovation - 2004B Refunding Fbrtion 

1,551 

1,551 

(253) 

1,298 

06/01/16-18 



Renovate Dormitories 

9,005 

9,005 

(255) 

8,750 

06/01/16-34 


George Mason University 


Housing Building V - 2004B Refunding Fbrtion 

6,306 

6,306 

(596) 

5,710 

06/01/16-20 



Student Housing VIII 

2,235 

2,235 

(65) 

2,170 

06/01/16-34 


James Madison University 


Bluestone Dormitory Phase II- 2004B Refunding Fbrtion 

1,985 

1,985 

(188) 

1,797 

06/01/16-20 



Dining Hall Renovation - 2004B Refunding Fbrtion 

254 

254 

(64) 

190 

06/01/16-17 



Residence Hall - 2004B Refunding Fbrtion 

2,232 

2,232 

(542) 

1,690 

06/01/16-17 



Student Services - 2004B Refunding Fbrtion 

1,191 

1,191 

(290) 

901 

06/01/16-17 



Dining Facilities Renovation - 2004B Refunding Fbrtion 

260 

260 

(44) 

216 

06/01/16-18 



Student Housing Phase 1 

46,660 

46,660 

(1,310) 

45,350 

06/01/16-34 


Longwood University 


Dining Hall - 2004B Refunding Fbrtion 

934 

934 

(112) 

822 

06/01/16-19 



Residence Hall Improvements - 2004B Refunding Fbrtion 

880 

880 

(107) 

773 

06/01/16-19 


Radford University 


Renovate Residence Halls 

11,080 

11,080 

(310) 

10,770 

06/01/16-34 


Univerisity of Mary Washington 


Residence Hall Renovation - 2004B Refunding Fbrtion 

656 

656 

(60) 

596 

06/01/16-20 


Univerisity of Virginia 


Residence Hall - Monroe Lane - 2004B Refunding Fbrtion 

1,595 

1,595 

(151) 

1,444 

06/01/16-20 



Residence Hall - Wise- 2004B Refunding Fbrtion 

1,512 

1,512 

(183) 

1,329 

06/01/16-19 


Virginia Commonwealth University 


Academic Parking Deck - 2004B Refunding Fbrtion 

2,429 

2,429 

(593) 

1,836 

06/01/16-17 



284 Commonwealth of Virginia 
















































































Outstanding 

Issued 







June 30, 

(Retired) 

Outstanding 





Amount 

2014 

During 

June 30, 




Series 

Issued 

as restated (1) 

Year 

2015 

Maturity 



General Obligation Debt (continued) 

Section 9(c) Debt (continued) 

Higher Educational Institution bonds (Component Units) (continued) 

Series 2014 Bonds (continued) 

Virginia Ftolytechnic Institute and State University 


Parking Auxiliary Projects - 2004B Refunding Portion 

300 

300 

(71) 

229 

06/01/16-17 


1 

Residence Hall - 2004B Refunding Pcrtion 

3,151 

3,151 

(764) 

2,387 

06/01/16-17 

1 


Dining Hall - 2004B Refunding Pcrtion 

793 

793 

(130) 

663 

06/01/16-18 


1 

Dining Hall HVAC- 2004B Refunding Portion 

587 

587 

(70) 

517 

06/01/16-19 

1 

Virginia State University 


Jones Dining Hall - 2004B Refunding Portion 

255 

255 

(43) 

212 

06/01/16-18 



Subtotal Series 2014 Bonds 

110,955 

110,955 

(7,841) 

103,114 




Series 2015 Bonds 

Christopher Newport University 


Construct Residential Housing 

18,860 

- 

18,860 

18,860 

06/01/17-35 


1 

Expand Dining Hall 

8,960 


8,960 

8,960 

06/01/17-35 

1 

College of William and Mary 

1 

Renovate Graduate St. - 2008B Ref Portion 

1,482 

- 

1,482 

1,482 

06/01/19-28 

1 


Renovate Dormitories 

10,980 

- 

10,980 

10,980 

06/01/16-35 


George Mason University 


Construct Housing VII & Entrance Road - 2007B Ref Portion 

6,817 

- 

6,817 

6,817 

06/01/18, 26- 32 


1 

Construct Student Housing VII - 2006B Refunding Portion 

11,765 


11,765 

11,765 

06/01/27 - 31 

1 


Construct Student Housing VII - 2007B Refunding Portion 

854 

- 

854 

854 

06/01/18, 26- 32 


1 

Renovate President Park, Phase II - 2008B Refunding Portion 

1,999 


1,999 

1,999 

06/01/19-28 

1 


Student Housing VII - 2008B Refunding Portion 

1,366 

- 

1,366 

1,366 

06/01/19-33 


1 

Student Housing VII - C - 2008B Refunding Portion 

17,566 

- 

17,566 

17,566 

06/01/19-33 

1 

James Madison University 

1 

Construct Dining Hall - 2007B Refunding Portion 

3,650 

- 

3,650 

3,650 

06/01/18, 26-27 

1 


Construct New Residence Hall - 2008B Refunding Portion 

11,695 

- 

11,695 

11,695 

06/01/19-28 


1 

Renovate Bluestone Residence Hall, Ph 3 - 2007B Ref Portion 

403 


403 

403 

06/01/18, 26-27 

1 

Longwood University 

1 

Renovate Cox Hall - 2007B Refunding Portion 

1,089 

- 

1,089 

1,089 

06/01/18, 26-27 

1 


Renovate Cox Hall - 2008B Refunding Portion 

2,785 

- 

2,785 

2,785 

06/01/19-28 


Old Dominion University 


Construct Residence Hall, Phase II- 2007B Refunding Portion 

2,827 

- 

2,827 

2,827 

6/1/2018, 26-27 


1 

Quad Housing Phase II - 2008B Refunding Portion 

24,074 


24,074 

24,074 

06/01/19-28 

1 

Radford University 


Renovate Residence Halls 

8,820 

- 

8,820 

8,820 

06/01/16-35 


Virginia Commonwealth University 


Monroe Park Housing - 2007B Refunding Portion 

6,806 

- 

6,806 

6,806 

06/01/18, 26- 37 


Virginia Pclytechnic Institute and State 

1 

New Residence Hall - 2008B Refunding Portion 

10,671 

- 

10,671 

10,671 

06/01/19-28 

1 


Parking Auxiliary Project - 2008B Refunding Portion 

921 

- 

921 

921 

06/01/19-28 


Virginia State University 


Construct Two Residence Halls - 2007B Refunding Portion 

4,995 

- 

4,996 

4,996 

06/01/18, 26- 27 



Subtotal Series 2015 Bonds 

159,385 

- 

159,386 

159,386 





Unamortized Premium 

- 

65,935 

18,108 

84,043 




Subtotal Higher Educational Institution 


Bonds 

1,284,792 

925,086 

11,771 

936,857 




Transportation Facilities Bonds (Primary Government) 

1 

Series 2006, Coleman Refunding 

31,880 

19,130 

(2,405) 

16,725 

06/01/16-21 

1 


Unamortized Premium 

- 

502 

(73) 

429 



Subtotal Transportation Facilities 


Bonds 

31,880 

19,632 

(2,478) 

17,154 





Continued on next page 


Commonwealth of Virginia 285 















































































Tax-Supported Debt - Detail of Long-term Indebtedness (Continued from previous page) 


For the Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 


Outstanding 

Issued 





June 30, 

(Retired) 

Outstanding 



Amount 

2014 

During 

June 30, 


Series 

Issued 

as restated (1) 

Year 

2015 

Maturity 


General Obligation Debt (continued) 


Section 9(c) Debt (continued) 


Parking Facilities Bonds (Primary Government) 

Series 2009 


13,755 

11,785 

(545) 

11,240 

06/01/16-29 


Series 2009 Refunding 


2,122 

2,122 

- 

2,122 

06/01/16-22 


Series 2012 Refunding (2002 Ref) 


82 

36 

(36) 




Series 2012 Refunding (2004A Ref) 


1,061 

1,061 

(267) 

794 

06/01/23-24 


Unamortized Premium 


- 

2,041 

(161) 

1,880 



Subtotal Parking Facilities 

Bonds 


17,020 

17,045 

(1,009) 

16,036 




Total Section 9(c) Debt 1,333,692_961,763 8,284 970,047 


Total General Obligation Debt 2,596,377_1,667,955 (55,727) 1,612,228 


Nongeneral Obligation Debt 
Section 9(d) Debt 


Virginia Public Building Authority Bonds (Primary Government) 


Series 2003A Refunding 

38,809 

980 

(980) 

- 



Series 2004A Refunding 

187,106 

56,415 

(56,415) 

- 



Series 2004B 

207,065 

21,800 

(21,800) 

- 



Series 2004C Refunding 

39,260 

8,700 

(8,700) 




Series 2004D Refunding 

106,460 

77,590 

(77,590) 

- 



Series 2005A Refunding 

47,305 

18,970 

(14,920) 

4,050 

08/01/15 


Series 2005B Refunding 

135,675 

54,900 

(41,315) 

13,585 

08/01/15 


Series 2005C 

165,810 

35,825 

(19,710) 

16,115 

08/01/15 


Series 2005D 

50,000 

50,000 

- 

50,000 

08/01/22-25 


Series 2006A 

135,000 

60,560 

(39,625) 

20,935 

08/01/15-16 


Series 2006B 

215,065 

93,885 

(68,970) 

24,915 

08/01/15-16 


Series 2007A 

242,480 

176,030 

(130,030) 

46,000 

08/01/15-17 


Series 2008B 

150,000 

125,320 

(99,285) 

26,035 

08/01/15-18 


Series 2009A 

40,995 

29,920 

(3,035) 

26,885 

08/01/15-21 


Series 2009B 

265,000 

218,030 

(12,825) 

205,205 

08/01/15-29 


Series 2009C 

10,000 

7,180 

(760) 

6,420 

08/01/15-21 


Series 2009D Refunding 

42,745 

36,325 

(4,670) 

31,655 

08/01/15-21 


Series 2010A1 

60,520 

25,595 

(12,545) 

13,050 

08/01/15 


Series 2010A2 BABs 

256,710 

256,710 

- 

256,710 

08/01/16-30 


Series 2010B1 

87,510 

59,785 

(10,805) 

48,980 

08/01/15-18 


Series 2010B2 Taxable BABs 

195,310 

195,260 

- 

195,260 

08/01/19-30 


Series 2010B3 Refunding 

50,780 

50,100 

(350) 

49,750 

08/01/15-22 


Series 2011A 

280,000 

262,405 

(9,305) 

253,100 

08/01/15-31 


Series 201 IB 

18,500 

17,085 

(730) 

16,355 

08/01/15-31 


Series 2012A Refunding 

72,415 

72,415 

- 

72,415 

08/01/16-24 


Series 2013A 

143,400 

143,400 

(4,440) 

138,960 

08/01/15-33 


Series 2013B Refunding 

72,370 

72,370 

- 

72,370 

08/01/19-23 


Series 2014A 

132,875 

- 

132,875 

132,875 

08/01/15-34 


Series 2014B Taxable 

29,735 

- 

29,735 

29,735 

08/01/15-34 


Series 2014C Refunding 

298,390 


298,390 

298,390 

08/01/15-27 


Series 2015A 

232,980 

- 

232,980 

232,980 

08/01/16-35 


Series 2015B Refunding 

134,730 


134,730 

134,730 

08/01/16-28 


Unamortized Premium 

- 

147,280 

58,707 

205,987 



Total Virginia Public Building Authority 

Bonds 

4,145,000 

2,374,835 

248,612 

2,623,447 






286 Commonwealth of Virginia 













































































Series 

Amount 

Issued 

Outstanding 
June 30, 

2014 

as restated (1) 

Issued 

(Retired) 

During 

Year 

Outstanding 
June 30, 

2015 

Maturity 

Nongeneral Obligation Debt (continued) 

Section 9(d) Debt (continued) 

Virginia College Building Authority Bonds (Component Unit) (2) 

21st Century College Program 


Series 2005 

115,785 

3,085 

(3,085) 

- 


1 

Series 2006BC 

120,000 

89,555 

(5,975) 

83,580 

02/01/16-26 


Series 2007A 

59,125 

58,195 

(965) 

57,230 

02/01/16-22 

1 

Series 2007B 

132,095 

16,840 

(12,320) 

4,520 

02/01/16-17 


Series 2008A 

144,075 

83,445 

(58,570) 

24,875 

02/01/16-19, 28 

1 

Series 2009A 

284,020 

237,635 

(133,255) 

104,380 

02/01/16-20, 28-29 


Series 2009B 

84,680 

41,260 

(9,510) 

31,750 

02/01/16-18 

1 

Series 2009C Refunding 

12,945 

5,530 

(5,530) 

- 



Series 2009D 

52,420 

24,815 

(7,990) 

16,825 

02/01/16-17 

1 

Series 2009E Refunding 

208,860 

194,260 

(11,935) 

182,325 

02/01/16-24 


Series 2009F2 Taxable BABs 

390,575 

390,575 

(19,605) 

370,970 

02/01/16-30 

1 

Series 2010A 

50,350 

22,530 

(7,210) 

15,320 

02/01/16-17 


Series 201 OBI 

55,815 

15,690 

(15,690) 

- 


1 

Series 2010B2 Taxable BABs 

290,600 

290,600 

- 

290,600 

02/01/16-30 


Series 2011A 

272,515 

251,050 

(14,330) 

236,720 

02/01/16-32 

1 

Series 2012A 

335,075 

301,100 

(16,100) 

285,000 

02/01/16-32 


Series 2012B 

349,255 

341,075 

(10,450) 

330,625 

02/01/16-33 

1 

Series 2012C 

8,350 

6,680 

(1,670) 

5,010 

02/01/16-18 


Series 2013A 

331,705 

331,705 

(10,205) 

321,500 

02/01/16-34 

1 

Series 2014A 

319,155 

319,155 

(18,890) 

300,265 

02/01/16-34 


Series 2014B 

27,985 

27,985 

(6,120) 

21,865 

02/01/16-20, 25 

1 

Series 2015A 

373,230 


373,230 

373,230 

02/01/16-35 


Series 2015B Refunding 

204,880 

- 

204,880 

204,880 

02/01/16-27 

1 

Series 2015C Taxable 

6,785 


6,785 

6,785 

02/01/16-20 


Unamortized Premium 

- 

224,838 

27,121 

251,959 


Total Virginia College Building Authority 


Bonds 

4,230,280 

3,277,603 

242,611 

3,520,214 



Transportation Debt (Primary Government) 

1 

Route 28 Refunding Bonds 

111,680 

87,527 

(3,222) 

84,305 

10/01/15-32 


Transportation Revenue Bonds (U.S. Route 58) 

606,620 

295,435 

(34,605) 

260,830 

11/15/15-26 

1 

Northern Virginia Transportation District Program 

324,410 

227,180 

(21,520) 

205,660 

11/15/15-34 


Oak Grove Connector (Chesapeake) 

33,075 

14,390 

(1,505) 

12,885 

11/15/15-22 

1 

Capital Projects 

767,645 

1,577,455 

227,720 

1,805,175 

11/15/15-39 


Unamortized Premium 

- 

171,395 

11,873 

183,268 



Total Section 9(d) Transportation Debt 

1,843,430 

2,373,382 

178,741 

2,552,123 



Virginia Port Authority Debt (Component Unit) 


Series 2005 

60,000 

3,770 

(1,840) 

1,930 

07/01/15-30 

1 

Series 2006 

21,730 

6,985 

(2,735) 

4,250 

07/01/15-16 


Series 2011 

57,370 

57,370 

- 

57,370 

07/01/15-36 

1 

Series 2012 

108,015 

101,715 

(6,345) 

95,370 

01/01/15-27 


Series 2012B 

45,230 

44,595 

(710) 

43,885 

07/01/15-29 

1 

Series 2012C 

4,795 

4,795 

- 

4,795 

07/01/15-30 


Series 2015 

58,680 

- 

58,680 

58,680 

07/01/28-31, 37-40 

I 

Unamortized Premium 

- 

2,814 

19,352 

22,166 



Total Virginia Port Authority Debt 

355,820 

222,044 

66,402 

288,446 



Virginia Biotechnology Research Partnership 

Authority (Component Unit) 


Series 2009 

91,010 

31,635 

(3,385) 

28,250 

09/01/15-22 


Unamortized Premium 

- 

2,720 

(351) 

2,369 


Total Virginia Biotechnology Research Partnership 


Authority (Component Unit) 

91,010 

34,355 

(3,736) 

30,619 



Continued on next page 


Commonwealth of Virginia 287 




















































































Tax-Supported Debt - Detail of Long-term Indebtedness (Continued from previous page) 
For the Fiscal Year Ended June 30, 2015 
(Dollars in Thousands) 


Series 

Amount 

Issued 

Outstanding 

June 30, 

2014 

as restated (1) 

Issued 

(Retired) 

During 

Year 

Outstanding 
June 30, 
2015 

Maturity 


Nongeneral Obligation Debt (continued) 

Section 9(d) Debt (continued) 

Economic Development Authority Obligations 

96,515 

50,165 

(5,425) 

44,740 

12/01/15-22 

Unamortized Premium 

- 

7,456 

(947) 

6,509 


Total Economic Development Authority Obligations 

96,515 

57,621 

(6,372) 

51,249 



Total Section 9(d) Debt 

10,762,055 

8,339,840 

726,258 

9,066,098 



Nongeneral Obligation Debt and Other Obligations 

Other Long-term Debt (2) 

Capital Leases 

- 

143,583 

(8,179) 

135,404 

Installment Purchase Obligations 

- 

190,462 

(13,277) 

177,185 

Aviation Note Payable 

6,600 

529 

(222) 

307 

Total Other Long-term Debt 

6,600 

334,574 

(21,678) 

312,896 


Other Long-term Obligations 


Compensated Absences 

- 

603,212 

(3,486) 

599,726 

Net Pension Liability 

- 

7,742,886 

(1,113,590) 

6,629,296 

OPEB Liability 


1,270,479 

214,201 

1,484,680 

Other 

- 

49,818 

(4,709) 

45,109 

Total Other Long-term Obligations 

- 

9,666,395 

(907,584) 

8,758,811 


Total Nongeneral Obligation Debt and Other Obligations 

10,768,655 

18,340,809 

(203,004) 

18,137,805 


Total Tax-Supported Debt and Other Obligations 

$ 13,365,032 $ 

20,008,764 

$ (258,731) 

$ 19,750,033 


(1) As discussed in Note 26, beginning balances have been restated. 

(2) These amounts are reported as notes payable on the higher education institutions' financial statements. 

(3) Pursuant to GASB Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local 
Governments, Governmental Activities include internal service funds. 


288 Commonwealth of Virginia 






















































Statistical Section 


The financial presentations included in this section present detailed information as a context for understanding what the information 
in the financial statements, note disclosures, and required supplementary information says about the Commonwealth’s overall 
financial health. 

Statistical schedules related to property taxes are not presented since the Commonwealth does not assess property taxes. 


Contents 


Financial Trends .291 

These schedules contain trend information to help the reader understand how the Commonwealth’s financial 
performance and well-being have changed overtime. 

Ten-Year Schedule of Revenues and Expenditures - Modified Accrual Basis - General Governmental 
Revenues by Source and Expenditures by Function 
Net Position by Component-Accrual Basis of Accounting 
Changes in Net Position - Accrual Basis of Accounting 

Changes in Fund Balance, Governmental Funds - Modified Accrual Basis of Accounting 
Fund Balance, Governmental Funds - Modified Accrual Basis of Accounting 
Comparison of General Fund Balance 

Revenue Capacity .305 

These schedules contain information to help the reader assess the factors affecting the Commonwealth’s 
ability to generate its income taxes. 

Personal Income Tax Rates 
Effective Tax Rates 

Personal Income Tax Filers and Liability by Income Level 
Personal Income by Industry 
Taxable Sales by Business Class 
Sales Tax Revenue by Business Class 

Debt Capacity .313 

These schedules present information to help the reader assess the affordability of the Commonwealth’s 
current levels of outstanding debt and the Commonwealth’s ability to issue debt in the future. 

Ratios of Outstanding Debt by Type 

Ratios of General Obligation Bonded Debt Outstanding 

Computation of Legal Debt Limit and Margin 

Schedule of Pledged Revenue Bond Coverage - Primary Government 9(d) General Long-term Debt 

Demographic and Economic Information .319 

These schedules offer demographic and economic indicators to help the reader understand the environment 
within which the Commonwealth’s financial activities take place and to help make comparisons over time 
and with other governments. 

Schedule of Demographic and Economic Statistics 
Principal Employers 

Operating Information .321 

These schedules contain information about the Commonwealth’s operations and resources to help the 
reader understand how the Commonwealth’s financial information relates to the services the Commonwealth 
provides and the activities it performs. 

State Employees by Function 
Operating Indicators by Function 
Capital Asset Statistics by Function 

Employees of the Department of Accounts .330 

Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports 
for the relevant year. 


Commonwealth of Virginia 289 


















290 Commonwealth of Virginia 







Commonwealth of Virginia 291 






Ten-Year Schedule of Revenues and Expenditures - Modified Accrual Basis 
General Governmental Revenues by Source and Expenditures by Function 


For Fiscal Year Ended June 30 
(Dollars in Millions) 


Tax Revenues: 


2015 


2014 


2013 


2012 









Individual and Fiduciary Income 

$ 

12,248 

$ 

11,659 

$ 

11,378 

$ 

10,714 

Sales and Use 


4,832 


4,606 


3,935 


3,866 

Motor Fuels 


887 


793 


879 


900 

Corporation Income 


797 


774 


778 


950 

Public Service Corporations 


119 


119 


116 


115 

Motor Vehicle Sales and Use 


846 


781 


582 


538 

Communications Sales and Use 


416 


422 


425 


425 

Gross Premiums of Insurance Companies 


454 


449 


396 


391 

Alcoholic Beverage Sales 


140 


132 


127 


121 

Deeds, Contracts, Wills, and Suits 


441 


395 


436 


371 

Beer and Beverage Excise 


43 


43 


43 


44 

Estate 


- 


- 


- 


- 

Tobacco Products 


179 


182 


182 


195 

Bank Stock 


19 


23 


20 


19 

Wine and Spirits/ABC Liter 


26 


26 


25 


24 

Other Taxes 


110 


95 


78 


75 

Total Tax Revenues 


21,557 


20,499 


19,400 


18,748 


Other Revenues: 

Federal Grants and Contracts 


9,727 


9,681 


9,913 


9,933 

Institutional Revenue 


303 


325 


360 


385 

Sales of Property and Commodities 


38 


56 


35 


41 

Rights and Privileges 


978 


950 


957 


921 

Interest, Dividends, and Rents 


91 


144 


83 


164 

Fines, Forfeitures, Costs, Penalties and Escheats 


352 


435 


366 


362 

Assessments 


137 


132 


125 


120 

Other Revenues 


987 


739 


824 


814 

Total Other Revenues 


12,613 


12,462 


12,663 


12,740 

Total Revenues 

$ 

34,170 

$ 

32,961 

$ 

32,063 

$ 

31,488 


Percentage Increase Over Previous Year 


3.7% 


2.8% 


1.8% 


0.7% 


Expenditures by Function: 

Education $ 9,372 $ 8,970 $ 8,886 $ 

Administration of Justice 2,690 2,724 2,566 

Individual and Family Services 13,421 13,196 13,039 

Resources and Economic Development 929 912 876 

Transportation 5,348 5,057 4,613 

General Government (1) 3,261 3,238 3,187 

Capital Outlay 251 194 219 _ 

Total Expenditures _$_ 35,272 $_ 34,291 $_ 33,386 $_ 


Percentage Increase Over Previous Year 2.9% 2.7% 2.7% 


8,733 

2,422 

12,682 

870 

4,474 

3,007 

330 

32,518 


1.4% 


Includes all General, Special Revenue, Debt Service, Capital Project, and Permanent Funds 


(1) General Government expenditure amounts include debt service principal retirement and interest charges. 
Source: Department of Accounts 


292 Commonwealth of Virginia 

















































































2011 


2010 


2009 


2008 


2007 


2006 



2.4% 3.1% 4.6% 6.0% 8.3% 6.9% 


Commonwealth of Virginia 293 




































































































Net Position by Component 
Accrual Basis of Accounting 

Last Ten Fiscal Years 
(Dollars in Millions) 


2015 2014 2013 2012 


Governmental Activities: 

Net Investment in Capital Assets (1) 

$ 

23,407 

$ 

22,317 

$ 

20,259 

$ 19,891 

Restricted 


1,436 


1,465 


1,456 

1,648 

Unrestricted 


(5,406) 


(2,820) 


(1,531) 

(2,216) 

Total Governmental Activities Net Position 


19,437 


20,962 


20,184 

19,323 


Business-type Activities: 

Net Investment in Capital Assets (1) 


34 


12 


30 

34 

Restricted 


845 


587 


371 

179 

Unrestricted 


500 


563 


261 

143 

Total Business-type Activities Net Position 


1,379 


1,162 


662 

356 


Primary Government: 


Net Investment in Capital Assets (1) 

23,441 


22,329 

20,289 

19,925 

Restricted 

2,281 


2,052 

1,827 

1,827 

Unrestricted 

(4,906) 


(2,257) 

(1,270) 

(2,073) 

Total Primary Government Net Position 

$ 20,816 

$ 

22,124 $ 

20,846 

$ 19,679 


(1) Beginning with fiscal year 2013, GASB Statement No. 63 changed the title of Invested in Capital Assets, Net of Related Debt to Net 
Investment in Capital Assets. Balances reported in prior fiscal years were not affected. 

Source: Department of Accounts 


294 Commonwealth of Virginia 

















































2011 2010 2009 2008 2007 2006 


$ 18,320 

$ 17,424 

$ 16,209 

$ 

15,241 

$ 

13,835 

$ 11,637 

1,171 

1,160 

1,421 


1,641 


1,893 

1,588 

(1,596) 

(1,887) 

(1,555) 


516 


944 

2,874 

17,895 

16,697 

16,075 


17,398 


16,672 

16,099 


35 

31 

23 

26 

30 

32 

16 

16 

372 

816 

872 

790 

70 

(169) 

(180) 

59 

212 

17 

121 

(122) 

215 

901 

1,114 

839 


18,355 

17,455 

16,232 


15,267 


13,865 

11,669 

1,187 

1,176 

1,793 


2,457 


2,765 

2,378 

(1,526) 

(2,056) 

(1,735) 


575 


1,156 

2,891 

$ 18,016 

$ 16,575 

$ 16,290 

$ 

18,299 

$ 

17,786 

$ 16,938 


Commonwealth of Virginia 295 





























































Changes in Net Position 
Accrual Basis of Accounting 


Last Ten Fiscal Years 
(Dollars in Millions) 




2015 


2014 


2013 


2012 

Expenses 

Governmental Activities: 

General Government 

$ 

3,267 

$ 

3,362 

$ 

3,019 

$ 

2,878 

Education 


9,845 


9,431 


9,281 


9,181 

Transportation 


4,369 


3,602 


3,307 


3,030 

Resources and Economic Development 


970 


940 


928 


985 

Individual and Family Services 


13,277 


13,116 


12,941 


12,712 

Administration of Justice 


2,751 


2,927 


2,760 


2,639 

Interest and Charges on Long-term Debt 


224 


238 


255 


229 

Total Governmental Activities Expenses 


34,703 


33,616 


32,491 


31,654 


Business-type Activities: 

Virginia Lottery 


1,300 


1,266 


1,194 


1,121 

Virginia College Savings Ran 


155 


104 


156 


96 

Fbcahontas Parkway 








n 

Unemployment Compensation 


431 


536 


584 


640 

Alcoholic Beverage Control 


580 


555 


533 


507 

Risk Management 


10 


13 


12 


13 

Local Choice Health Care 


350 


308 


296 


267 

Route 460 Funding Corporation of Virginia 


13 


82 


67 


- 

Virginia Industries for the Blind 


43 


38 


31 


32 

Consolidated Laboratory 


9 


9 


8 


7 

eVA Procurement System 


23 


20 


20 


19 

Department of Environmental Quality Title V 


10 


12 


11 


11 

Wireless E-911 


37 


37 


42 


41 

Museum and Library Gift Shops 


7 


6 


7 


6 

Behavioral Health Canteen and Work Activity 




1 


1 


1 

Virginia Information Providers Network 


- 


- 


- 


- 

Total Business-type Activities Expenses 


2,968 


2,987 


2,962 


2,761 

Total Primary Government Expenses 

$ 

37,671 

$ 

36,603 

$ 

35,453 

$ 

34,415 


Program Revenues 

Governmental Activities: 

Charges for Services: 

General Government 

$ 

297 

$ 

255 

$ 

250 

$ 

255 

Education 


545 


518 


448 


397 

Transportation 


691 


652 


680 


645 

Resources and Economic Development 


379 


359 


345 


393 

Individual and Family Services 


366 


376 


413 


429 

Administration of Justice 


316 


401 


322 


323 

Operating Grants and Contributions 


8,915 


8,732 


8,820 


9,178 

Capital Grants and Contributions 


1,619 


1,509 


1,754 


1,267 

Total Governmental Activities Program Revenues 


13,128 


12,802 


13,032 


12,887 


Source: Department of Accounts 


296 Commonwealth of Virginia 

































































2011 2010 2009 2008 2007 2006 


$ 2,917 

$ 2,829 

$ 2,541 

$ 

2,470 

$ 

2,645 

$ 

2,015 

9,086 

9,312 

9,566 


9,300 


9,542 


7,926 

2,839 

2,311 

2,786 


3,054 


2,256 


2,559 

1,006 

1,107 

1,003 


878 


841 


835 

12,663 

12,285 

10,757 


9,249 


9,022 


8,570 

2,641 

2,741 

2,611 


2,607 


2,659 


2,493 

228 

206 

201 


205 


203 


209 

31,380 

30,791 

29,465 


27,763 


27,168 


24,607 


1,030 

998 

920 


936 


929 


908 

243 

294 

115 


244 


180 


238 









39 

662 

923 

881 


433 


382 


339 

479 

469 

467 


457 


434 


408 

8 

7 

6 


6 


3 


6 

230 

231 

231 


202 


179 


165 

- 

- 

- 


- 


- 


- 

28 

28 

24 


24 


20 


20 

7 

6 

6 


6 


6 


5 

17 

19 

18 


18 


19 


6 

10 

10 

11 


12 


11 


11 

38 

48 

53 


50 


47 


43 

7 

2 

1 


2 


2 


2 


1 

i 




1 




- 

- 


- 


- 


14 

2,759 

3,036 

2,734 


2,390 


2,213 


2,205 

$ 34,139 

$ 33,827 

$ 32,199 

$ 

30,153 

$ 

29,381 

$ 

26,812 


$ 

254 

$ 

248 

$ 

243 

$ 

229 

$ 

216 

$ 

251 


388 


380 


373 


379 


350 


311 

■ 

650 


611 


643 


709 


583 


601 


309 


306 


299 


297 


299 


280 

■ 

430 


411 


415 


389 


370 


394 


322 


308 


321 


387 


292 


286 

■ 

9,950 


9,951 


7,584 


6,067 


5,870 


5,671 


1,324 


1,603 


997 


1,152 


851 


707 


13,627 


13,818 


10,875 


9,609 


8,831 


8,501 


Continued on next page 


Commonwealth of Virginia 297 


























































































Changes in Net Position 

Accrual Basis of Accounting (Continued from previous page) 
Last Ten Fiscal Years 
(Dollars in Millions) 


Business-type Activities: 

2015 


2014 

2013 


2012 

Charges for Services: 

Virginia Lottery 

1,844 


1,811 

1,690 


1,616 

Virginia College Savings Ran 

188 


408 

301 


160 

Fbcahontas Parkw ay 

- 


- 

- 


- 

Unemployment Compensation 

693 


761 

790 


853 

Alcoholic Beverage Control 

730 


689 

662 


633 

Risk Management 

8 


9 

5 


5 

Local Choice Health Care 

343 


321 

285 


259 

Virginia Industries for the Blind 

44 


36 

30 


32 

Consolidated Laboratory 

10 


9 

7 


8 

eVA Procurement System 

20 


16 

16 


16 

Department of Environmental Quality Title V 

11 


11 

11 


8 

Wireless E-911 

55 


54 

62 


55 

Museum and Library Gift Shops 

8 


6 

8 


7 

Behavioral Health Canteen and Work Activity 







Virginia Information Providers Network 

- 


- 

- 



Operating Grants and Contributions 







Capital Contributions 

- 


70 

61 



Total Business-type Activities Program Revenue 

3,954 


4,201 

3,928 


3,653 

Total Primary Government Program Revenues 

$ 17,082 

$ 

17,003 

$ 16,960 

$ 

16,540 


Net (Expense)/Revenue 

Governmental Activities 

$ (21,575) 

$ 

(20,814) 

$ (19,459) 

$ 

(18,767) 

Business-type Activities 

986 


1,214 

966 


892 

Total Primary Government Net Expense 

$ (20,589) 

$ 

(19,600) 

$ (18,493) 

$ 

(17,875) 


General Revenues and Other Changes in Net Position 
Governmental Activities: 


Taxes: 


Individual and Fiduciary Income 

$ 12,266 

$ 

11,681 

$ 11,400 

$ 10,814 

Sales and Use 

4,830 


4,597 

3,941 

3,885 

Corporation Income 

801 


770 

805 

979 

Motor Fuel 

888 


792 

879 

900 

Motor Vehicle Sales and Use 

846 


781 

582 

538 

Communications Sales and Use 

416 


420 

424 

423 

Premiums of Insurance Companies 

453 


460 

407 

391 

Public Service Corporations 

119 


119 

116 

115 

Other Taxes 

959 


896 

909 

849 

Unrestricted Grants and Contributions 

49 


49 

74 

49 

Investment Earnings 

16 


44 

6 

84 

Miscellaneous 

206 


234 

306 

465 

Special Item 

(134) 


- 

- 

- 

Transfers 

728 


724 

670 

668 

Contributions to Permanent and Term Endow ments 

- 


- 

- 

- 

Total Governmental Activities 

22,443 


21,567 

20,519 

20,160 


Business-type Activities: 


Other Taxes 

9 


9 


9 


9 

Investment Earnings 

2 


2 


1 


i 

Miscellaneous 

- 


1 


- 


- 

Special Items 

34 







Transfers 

(728) 


(724) 


(670) 


(668) 

Total Business-type Activities 

(683) 


(712) 


(660) 


(658) 

Total Primary Government 

$ 21,760 

$ 

20,855 

$ 

19,859 

$ 

19,502 


Change in Net Position 

Governmental Activities 

$ 868 

$ 

753 

$ 

1,060 

$ 

1,394 

Business-type Activities 

303 


502 


306 


234 

Total Primary Government 

$ 1,171 

$ 

1,255 

$ 

1,366 

$ 

1,628 


Source: Department of Accounts 


298 Commonwealth of Virginia 






































































































2011 2010 2009 2008 2007 2006 



1,483 


1,436 


1,366 


1,389 


1,366 


1,367 


459 


371 


(117) 


70 


328 


272 


- 


- 


- 


- 


- 


15 


686 


524 


341 


350 


438 


543 


598 


584 


573 


552 


525 


497 


4 


5 


6 


7 


7 


5 


247 


241 


226 


216 


207 


186 


28 


30 


24 


24 


21 


21 


8 


7 


9 


8 


7 


6 


19 


17 


27 


26 


29 


7 


7 


10 


9 


10 


10 


10 


53 


53 


51 


51 


50 


43 


8 


2 


2 


2 


2 


2 








1 


1 


1 


- 


- 


- 


- 


- 


15 


1 


4 


105 


39 


36 


27 


- 


- 


- 


- 


- 


- 


3,601 


3,284 


2,622 


2,745 


3,027 


3,017 

$ 

17,228 

$ 

17,102 

$ 

13,497 

$ 

12,354 

$ 

11,858 

$ 

11,518 


$ (17,753) 

$ (16,973) 

$ (18,590) $ 

(18,154) $ 

(18,337) $ 

(16,106) 

842 

248 

(112) 

355 

814 

812 

$ (16,911) 

$ (16,725) 

$ (18,702) $ 

(17,799) $ 

(17,523) $ 

(15,294) 


$ 10,050 

$ 

8,779 

$ 

9,559 

$ 

10,100 

$ 

9,639 

$ 

9,206 

3,669 


3,569 


3,554 


3,821 


3,756 


3,679 

852 


846 


546 


772 


906 


838 

903 


891 


889 


924 


930 


938 

495 


440 


406 


534 


588 


593 

557 


456 









406 


414 


365 


356 


385 


374 

113 


112 


103 


106 


89 


91 

795 


777 


814 


1,025 


1,161 


1,296 

48 


49 


60 


54 


50 


48 

63 


205 


143 


349 


477 


221 

286 


427 


237 


224 


154 


115 

- 


- 


- 


- 


- 


- 

615 


597 


591 


593 


564 


581 

- 


- 


- 


- 


20 


- 

18,852 


17,562 


17,267 


18,858 


18,719 


17,980 


9 

10 

13 


12 


12 


12 

i 

2 

4 


12 


ii 


12 

- 

- 

- 


1 


- 


1 









164 

(614) 

(597) 

(591) 


(593) 


(563) 


(581) 

(604) 

(585) 

(574) 


(568) 


(540) 


(392) 

$ 18,248 

$ 16,977 

$ 16,693 

$ 

18,290 

$ 

18,179 

$ 

17,588 


$ 

1,099 

$ 

589 

$ 

(1,323) 

$ 

704 

$ 

381 

$ 

1,873 


238 


(337) 


(686) 


(213) 


274 


421 

$ 

1,337 

$ 

252 

$ 

(2,009) 

$ 

491 

$ 

655 

$ 

2,294 


Commonwealth of Virginia 299 





























































































































Changes in Fund Balance, Governmental Funds 
Modified Accrual Basis of Accounting 


Last Ten Fiscal Years 
(Dollars in Millions) 



2015 

2014 

2013 

2012 

Revenues 

Taxes 

$ 21,557 

$ 20,499 

$ 19,400 

$ 18,748 

Rights and Privileges 

978 

950 

957 

921 

Institutional Revenue 

303 

325 

360 

385 

Interest, Dividends, Rents, and 

Other Investment Income 

91 

144 

83 

164 

Federal Grants and Contracts 

9,727 

9,681 

9,913 

9,933 

Other 

1,514 

1,362 

1,350 

1,337 

Total Revenues 

34,170 

32,961 

32,063 

31,488 


Expenditures 


General Government 

2,544 


2,538 

2,424 

2,322 

Education 

9,372 


8,970 

8,886 

8,733 

Transportation 

5,348 


5,057 

4,613 

4,474 

Resources and Economic Development 

929 


912 

876 

870 

Individual and Family Services 

13,421 


13,196 

13,039 

12,682 

Administration of Justice 

2,690 


2,724 

2,566 

2,422 | 

Capital Outlay 

251 


194 

219 

330 

Debt Service: 

Principal Retirement 

441 


421 

474 

423 

Interest and Charges 

276 


279 

289 

262 | 

Total Expenditures 

35,272 


34,291 

33,386 

32,518 

Revenues Over (Under) Expenditures 

(1,102) 


(1,330) 

(1,323) 

(1,030) 


Other Financing Sources (Uses) 

Transfers In 

1,706 


1,661 

1,625 

1,770 

Transfers Out 

(972) 


(927) 

(940) 

(1,097) 

Notes Issued 

7 


16 

22 

10 

Insurance Recoveries 

1 


- 

1 

3 I 

Capital Leases Issued 

- 


- 

- 

1 

Bonds Issued 

671 


273 

264 

1,196 

Premium on Debt Issuance 

150 


75 

85 

217 

Refunding Bonds Issued 

536 


277 

201 

319 | 

Sale of Capital Assets 

24 


16 

96 

4 

Payments to Refunded Bond Escrow Agents 

(618) 


(337) 

(258) 

(373) 

Total Other Financing Sources (Uses) 

1,505 


1,054 

1,096 

2,050 


Net Change in Fund Balances 

$ 403 

$ 

(276) 

$ (227) 

$ 1,020 

Debt Service as a Percentage of 

Noncapital Expenditures (1) 

2.22% 


2.21% 

2.58% 

2.29% 


(1) Noncapital expenditures exclude expenditures for capital outlay, which are recorded by function. The majority of these expenditures were for 
Transportation. 

Source: Department of Accounts 


300 Commonwealth of Virginia 










































































2011 2010 2009 2008 2007 2006 


$ 17,825 

$ 16,187 

$ 

16,276 

$ 

17,659 

$ 

17,436 

$ 

17,043 

917 

869 


889 


933 


826 


816 

384 

403 


409 


390 


360 


343 


159 

294 


218 


452 


532 


256 

10,749 

10,628 


8,112 


6,627 


6,203 


5,958 

1,238 

1,196 


1,100 


1,177 


1,027 


1,048 

31,272 

29,577 


27,004 


27,238 


26,384 


25,464 


2,439 

2,306 

1,889 

2,047 

2,030 

1,787 

8,683 

8,842 

9,260 

8,940 

8,700 

7,661 

3,860 

3,401 

3,704 

3,883 

3,141 

3,092 

886 

897 

990 

868 

812 

788 

12,688 

12,236 

10,764 

9,345 

8,996 

8,626 

2,398 

2,399 

2,531 

2,543 

2,398 

2,296 

439 

619 

612 

845 

809 

588 


456 

420 


416 


362 


322 

280 

233 

206 


207 


203 


192 

179 | 

32,082 

31,326 


30,373 


29,036 


27,400 

25,297 

(810) 

(1,749) 


(3,369) 


(1,798) 


(1,016) 

167 



1,498 

1,624 


1,571 


1,663 


1,637 

1,590 

■ (876) 

(1,022) 


(976) 


(1,070) 


(1,072) 

(1,014) 

37 

20 


21 


- 


16 

128 

8 

5 


8 


6 


7 

4 I 

2 

1 


1 


5 


4 

1 

883 

941 


646 


416 


593 

584 

71 

44 


46 


23 


40 

45 

51 

124 


68 


59 


123 

205 

3 

4 


4 


7 


8 

7 

(55) 

(146) 


(74) 


(62) 


(131) 

(214) 

1,622 

1,595 


1,315 


1,047 


1,225 

1,336 


$ 812 

$ (154) 

$ 

(2,054) 

$ 

(751) 

$ 

209 $ 

1,503 

2.30% 

2.04% 


2.09% 


2.00% 


1.93% 

1.86% 


Commonwealth of Virginia 301 





















































































Fund Balance, Governmental Funds 
Modified Accrual Basis of Accounting 

Last Ten Fiscal Years 
(Dollars in Millions) 


2015 2014 2013 2012 


General Fund 



(1) GASB Statement No. 54 changes in fund balance information presented in this section began with fiscal year 2011. Fund balances prior to 
fiscal year 2011 were not reclassified because this was deemed impractical. The nature of the difference between fiscal year 2011 forward 
and all prior years relates to fund balances for those prior years not being reclassified to GASB Statement No. 54 fund classifications. For 
additional information on fund balance classifications, see Note 3, Fund Balance Classifications. 


Source: Department of Accounts 


302 Commonwealth of Virginia 


























































2011 2010 2009 2008 2007 2006 



Commonwealth of Virginia 303 








































































Comparison of General Fund Balance 

Last Ten Fiscal Years 
(Dollars in Millions) 


_ Fund Balance _ 

Modified 

Fiscal Year Budgetary Accrual 


Ended June 30, 

Basis 


Basis 


2015 $ 

1,759.2 

$ 

848.4 

2014 

1,349.3 


629.6 

2013 

1,820.6 


637.9 

2012 

1,683.4 


512.4 

2011 

1,297.6 


(58.8) 

2010 

870.9 


(674.3) 

2009 

823.5 


(258.5) 

2008 

2,219.8 


1,202.9 

2007 

2,955.1 


1,984.0 

2006 

2,890.0 


2,135.5 


Source: Department of Accounts 


304 Commonwealth of Virginia 



















Commonwealth of Virginia 305 






Personal Income Tax Rates 

Last Ten Fiscal Years 
(Dollars in Millions) 


For the Fiscal 

Personal 


Average 

Year Ended 

Income Tax 

Personal 

Effective 

June 30, 

Collections (1) 

Income (2)(3) 

Rate (3)(4) 


2015 

$ 12,329 

$ 433,670 

2.84% 

2014 

11,253 

417,770 

2.69% 

2013 

11,340 

440,406 

2.57% 

2012 

10,613 

401,060 

2.65% 

2011 

9,944 

384,653 

2.59% 

2010 

9,088 

363,270 

2.50% 

2009 

9,481 

353,249 

2.68% 

2008 

10,115 

361,258 

2.80% 

2007 

9,788 

343,226 

2.85% 

2006 

9,309 

323,755 

2.88% 


(1) Tax revenues from individual and fiduciary income tax. 

(2) Personal income amounts provided by U.S. Bureau of Economic Analysis website. 

(3) Amounts for fiscal years 2006-2014 were revised to reflect the incorporation of newly available and revised source data, as well as improved 
estimating methodologies. 

(4) Average effective rate equals tax collections divided by income. 

Sources: Department of Taxation 

U.S. Bureau of Economic Analysis 


Effective Tax Rates (1) _ 

Tax Years 2005-2014 

Income Tax Bracket Tax Rate 


$0 - $3,000 

2.00% 

$3,000 - $5,000 

2.00% - 2.40% 

$5,000-$17,000 

2.40% - 4.23% 

$17,000- $30,000 

4.23% - 4.89% 

$30,000 - $50,000 

4.89% - 5.23% 

$50,000-$100,000 

5.23% - 5.49% 

Over $100,000 

5.49% up to 5.75% 


(1) Amounts shown are for all filing status returns. 
Source: Department of Taxation 


306 Commonwealth of Virginia 






























Personal Income Tax Filers and Liability by Income Level (1) 

Current Year and Ten Years Ago 


Tax Year Ended December 31, 2013 (2) Tax Year Ended December 31, 2004 


Income Level 

Number of 

Returns 

% of Total 


Income Tax 
Liability 

% of Total 

Number of 

Returns 

% of Total 


Income Tax 
Liability 

% of Total 


$100,000 and higher 

687,720 

18.3% 

$ 

6,982,322,551 

66.0% 

399,699 

12.1% 

$ 

4,031,807,838 

54.8% 

$75,000 - $99,999 

322,261 

8.6% 


1,170,564,302 

11.1% 

260,810 

7.9% 


944,241,547 

12.8% 

$50,000 - $74,999 

488,520 

13.0% 


1,158,182,854 

10.9% 

431,160 

13.0% 


1,051,466,611 

14.3% 

$25,000 - $49,999 

850,304 

22.6% 


1,010,305,976 

9.5% 

770,134 

23.3% 


993,782,737 

13.5% 

$10,000-$24,999 

758,813 

20.1% 


260,591,447 

2.4% 

707,096 

21.4% 


312,988,502 

4.3% 

$9,999 and lower 

658,051 

17.4% 


4,376,555 

0.1% 

739,160 

22.3% 


23,761,642 

0.3% 


Total 

3,765,669 

100.0% 

$ 

10,586,343,685 

100.0% 

3,308,059 

100.0% 

$ 

7,358,048,877 

100.0% 


(1) Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide 
alternative information regarding the sources of the state’s revenue. 

(2) Tax year 2013 is the most recent year for which data are available. 

Source: Department of Taxation 


Commonwealth of Virginia 307 













































Personal Income by Industry 

Last Ten Fiscal Years 
(Dollars in Millions) 


2015(1) 2014 (2) 2013 (2) 2012 (2) 2011 (2) 



Total Personal Income $ 433,670 $ 417,770 $ 404,406 $ 401,060 $ 384,653 


(1) Personal income figures for fiscal year 2015 are estimated. 

(2) Amounts for fiscal years 2006-2014 were revised to reflect the incorporation of newly available and revised source data. 

(3) Includes dividends, interest, rental income, residence adjustment, government transfers to individuals, and deductions for social insurance. 

Source: U.S. Bureau of Economic Analysis (BEA) 

Note: Details may not agree to BEA due to rounding. 


308 Commonwealth of Virginia 





































2010 (2) 2009 (2) 2008 (2) 2007 (2) 2006 (2) 


$ 

255 

$ 

227 

$ 

312 

$ 

221 

$ 

322 



338 


288 


270 


321 


327 


1,050 


872 


1,034 


794 


880 


13,857 


13,469 


15,642 


17,151 


17,912 


15,932 


15,651 


17,009 


17,299 


17,105 


16,116 

16,629 

16,805 

16,872 

16,624 

9,143 

9,165 

9,559 

9,591 

8,798 

13,829 

13,376 

13,844 

14,212 

14,035 


16,121 

15,582 

15,908 

17,051 

17,155 

109,948 

106,744 

104,058 

97,450 

90,640 

22,206 

20,113 

19,045 

18,012 

16,585 

13,833 

13,326 

13,048 

12,474 

12,113 

31,209 

30,780 

29,697 

28,256 

26,905 

99,433 

97,027 

105,027 

93,522 

84,354 

$ 363,270 

$ 353,249 

$ 361,258 

$ 343,226 

$ 323,755 


Commonwealth of Virginia 309 


































Taxable Sales by Business Class (1) (2) 

Last Ten Calendar Years 
(Dollars in Millions) 


2014 2013 2012 2011 2010 


Alcoholic Beverage 

676 


640 


559 

567 


545 

Apparel 

4,918 


6,668 


6,545 

4,749 


4,601 

Automotive 

3,024 


2,945 


2,860 

2,717 


2,555 

Food 

28,972 


27,924 


27,150 

25,691 


24,617 

Fuel 

1,864 


1,880 


1,899 

1,828 


1,691 

Furniture, Home Furnishings, and Equipment 

2,663 


2,645 


2,612 

2,538 


2,442 

General Merchandise 

21,693 


21,852 


21,568 

20,635 


19,836 

Hotels, Motels, Tourist Camps, etc. 

3,238 


3,098 


3,107 

2,988 


2,837 

Lumber, Building Materials, and Supply 

8,589 


8,513 


8,112 

7,750 


7,652 

Machinery, Equipment, and Supplies 

303 


300 


357 

309 


243 

Miscellaneous 

17,994 


16,031 


16,228 

16,341 


16,402 

Other Miscellaneous and Unidentifiable 

2,270 


2,088 


2,321 

2,955 


2,997 

Total 

$ 96,204 

$ 

94,584 

$ 

93,318 

$ 89,068 

$ 

86,418 


Direct Sales Tax Rate (2) 

5.3% 


5.3% 


5.0% 

5.0% 


5.0% 


(1) Retail sales information is available only on a calendar-year basis. 

(2) Effective July 1, 2013, the sales tax rate increased from 5.0 percent to 5.3 percent. 

Source: Department of Taxation 


310 Common wealth of Virginia 







































2009 


2008 


2007 


2006 


2005 



532 


517 


487 


456 


362 


4,494 


5,015 


5,191 


4,917 


3,794 


2,397 


2,440 


2,563 


2,413 


3,571 


24,134 


23,721 


22,502 


19,943 


19,363 


1,582 


1,539 


1,729 


1,778 


990 


2,519 


3,013 


3,448 


3,684 


4,290 


19,577 


19,387 


19,574 


17,104 


12,669 


2,804 


3,066 


3,079 


3,003 


2,427 


7,369 


8,140 


9,354 


8,929 


8,962 


173 


241 


238 


213 


1,945 


16,780 


18,527 


18,301 


18,355 


14,512 


3,505 


4,495 


5,577 


8,683 


4,736 

$ 

85,866 

$ 

90,101 

$ 

92,043 

$ 

89,478 

$ 

77,621 



5.0% 


5.0% 


5.0% 


5.0% 


4.5% 


Commonwealth of Virginia 311 


































Sales Tax Revenue by Business Class (1) 

Tax Year 2014 and Nine Years Ago 


Tax Year Ended December 31, 2014 
Nu m be r % of % of 

of Filers Total Tax Liability Total 


Tax Year Ended December 31, 2005 
Nu m be r % of % of 

of Filers Total Tax Liability Total 


Alcoholic Beverage 

359 

0.4% 

$ 

676,002,220 

0.7% 

603 

0.2% 

$ 

362,213,515 

0.5% 

Apparel 

3,814 

3.7% 


4,917,950,090 

5.1% 

16,743 

4.3% 


3,794,176,619 

4.9% 

Automotive 

3,028 

2.9% 


3,024,332,962 

3.1% 

25,778 

6.7% 


3,571,242,215 

4.6% 

Food 

22,178 

21.4% 


28,972,022,860 

30.1% 

74,854 

19.3% 


19,363,072,906 

25.0% 

Fuel 

2,443 

2.4% 


1,863,822,561 

1.9% 

7,445 

1.9% 


989,875,205 

1.3% 

Furniture, Home Furnishings, and Equipment 

3,525 

3.4% 


2,663,271,354 

2.8% 

20,111 

5.2% 


4,290,387,769 

5.5% 

General Merchandise 

16,081 

15.5% 


21,692,828,701 

22.6% 

32,339 

8.4% 


12,668,598,564 

16.3% 

Hotels, Motels, Tourist Camps, etc. 

2,314 

2.2% 


3,237,643,337 

3.4% 

7,052 

1.8% 


2,427,376,798 

3.1% 

Lumber, Building Materials, and Supply 

5,547 

5.4% 


8,588,922,803 

8.9% 

16,465 

4.2% 


8,961,776,603 

11.5% 

Machinery, Equipment, and Supply 

159 

0.2% 


303,274,966 

0.3% 

15,364 

4.0% 


1,945,360,572 

2.5% 

Miscellaneous 

37,288 

36.0% 


17,994,208,965 

18.7% 

155,103 

40.1% 


14,511,551,131 

18.7% 

Other Miscellaneous and Unidentifiable 

6,750 

6.5% 


2,269,632,597 

2.4% 

15,035 

3.9% 


4,735,840,951 

6.1% 


Total 

103,486 

100.0% 

$ 

96,203,913,416 

100.0% 

386,892 

100.0% 

$ 

77,621,472,848 

100.0% 


(1) Due to confidentiality issues, the names of the ten largest revenue payers are not presented. The categories presented are intended to 
provide alternative information regarding the sources of the state’s revenue. 

Sources: Department of Taxation 

Weldon Cooper Center for Public Service, University of Virginia 


312 Common wealth of Virginia 










































Commonwealth of Virginia 313 






Ratios of Outstanding Debt by Type 

Last Ten Fiscal Years 

(Amounts in Thousands except Per Capita) 



Governmental Activities 

Business-type Activities 


Debt as a 


For the Fiscal 

General 

Non- General 

Other 

Non-General 

Other 

Total 

Percentage 

Amount 

Year Ended 

Obligation 

Obligation 

Long-term 

Obligation 

Long-term 

Primary 

of Personal 

Per 

June 30, 

Bonds 

Bonds 

Obligations (1) 

Bonds 

Obligations (1) 

Government 

Income (2) 

Capita (3) 


2015 

$ 675,371 

$ 5,911,768 

$ 222,877 

$ 320,110 

$ 5,708 

$ 7,135,834 

1.65% 

$ 850 

2014 

742,869 

5,555,935 

233,002 

317,305 

6,072 

6,855,183 

1.64% 

823 

2013 

791,992 

5,593,228 

285,594 

314,662 

6,453 

6,991,929 

1.73% 

849 

2012 

873,741 

5,703,448 

326,543 

- 

449 

6,904,181 

1.72% 

844 

2011 

960,374 

4,701,764 

348,972 


918 

6,012,028 

1.56% 

749 

2010 

1,049,386 

4,120,056 

366,170 

- 

1,594 

5,537,206 

1.52% 

702 

2009 

1,077,520 

3,549,958 

373,594 


2,883 

5,003,955 

1.42% 

638 

2008 

1,001,989 

3,345,259 

312,890 

- 

4,082 

4,664,220 

1.29% 

601 

2007 

900,329 

3,363,275 

341,574 


2,610 

4,607,788 

1.34% 

599 

2006 

716,498 

3,231,917 

342,805 

- 

5,967 

4,297,187 

1.33% 

564 


(1) Pension, compensated absences, other postemployment benefits, uninsured employers’ fund, lottery prizes payable, tuition benefits payable, 
and pollution remediation obligations have been excluded. 

(2) Personal income amounts used for this calculation were obtained from the U. S. Bureau of Economic Analysis. 

(3) Population statistics used in this calculation were provided by the Department of Taxation. Fiscal year 2015 population was estimated. 

Sources: Department of Accounts 

Department of Taxation 
U. S. Bureau of Economic Analysis 


314 Common wealth of Virginia 
























Ratios of General Obligation Bonded Debt Outstanding 

Last Ten Fiscal Years 

(Amounts in Thousands except Per Capita) 


For the 


Fiscal Year 


General Bonded Debt Outstanding [1] [2] 


Percentage 

Amount 

Ended 

Governmental 

Higher Education 


of Tax 

Per 

June 30, 

9(b) [3] 

9(c) [4] 


9(c) 

Total 

Revenues [5] 

Capita [6] 


2015 

$ 642,181 

$ 33,190 

$ 

936,857 $ 

1,612,228 

13.08% 

$ 192 

2014 

706,192 

36,677 


925,086 

1,667,955 

14.82% 

200 

2013 

752,493 

39,499 


877,858 

1,669,850 

14.73% 

203 

2012 

831,148 

42,593 


906,474 

1,780,215 

16.77% 

218 

2011 

914,574 

45,800 


765,280 

1,725,654 

17.35% 

215 

2010 

999,841 

49,545 


631,275 

1,680,661 

18.49% 

213 

2009 

1,040,636 

36,884 


573,550 

1,651,070 

17.41% 

211 

2008 

935,105 

66,884 


487,296 

1,489,285 

14.72% 

192 

2007 

821,563 

78,766 


411,842 

1,312,171 

13.41% 

171 

2006 

626,124 

90,374 


325,969 

1,042,467 

11.20% 

137 


[1] Beginning with fiscal year 2014, GASB Statement No. 65 removed deferrals of debt defeasance from the debt balances. Balances reported 
in prior fiscal years netted the deferrals against the debt balances. Amounts are net of unamortized premiums, discounts, deferrals on debt 
defeasance, and/or issuance expenses. 

[2] There are currently no Section 9(a) bonds outstanding. 

[3] Section 9(b) bonds have been authorized by the citizens of Virginia through bond referenda to finance capital projects. These bonds are 
retired through the use of state appropriations. 

[4] Section 9(c) bonds are issued to finance capital projects which, when completed, will generate revenue to repay the debt. 

[5] Individual and fiduciary Income tax collections were used for this calculation. 

[6] Population statistics used in this calculation are provided by the Department of Taxation. Fiscal year 2015 population was estimated. 

Source: Department of Accounts 


Commonwealth of Virginia 315 
























Computation of Legal Debt Limit and Margin 


Last Ten Fiscal Years 
(Dollars in Thousands) 

Tax Revenues Required for Computation 

Taxes on Income and Retail Sales: 


2015 


2014 


2013 


2012 









Individual and Fiduciary Income Tax [1] 

£ 

12,328,675 

£ 

11,253,348 

£ 

11,339,965 

£ 

10,612,836 

Corporate Income Tax [2] 


831,907 


757,491 


796,728 


859,923 

State Sales and Use Tax [3] 


3,587,849 


3,399,223 


3,419,489 


3,314,677 

Total 

£ 

16,748,431 

£ 

15,410,062 

£ 

15,556,182 

£ 

14,787,436 


Average Tax Revenues (Three Fiscal Years) 

£ 

15,904,892 

£ 

15,251,227 

£ 

14,766,900 

£ 

13,967,817 



Section 9(a) [2] General Obligation Debt Limit [4]_ 

Debt Issuance Limit 

(30% of 1.15 times annual tax revenues) $ 5,778,209 $ 5,316,471 $ 5,366,883 $ 5,101,665 

Less Bonds Outstanding: _- _ - __ 1 

Debt Issuance Margin for Section 9(a) [2] 

General Obligation Bonds _$_ 5,778,209 £ 5,316,471 $ 5,366,883 $ 5,101,665 


Debt Applicable to Limit as a % Limit 0.00% 0.00% 0.00% 0.00% 


Section 9(b) General Obligation Debt Limit_ 

Debt Issuance Limit 

(1.15 times average tax revenues for three fiscal years) $ 18,290,626 $ 17,538,911 $ 16,981,935 $ 16,062,990 

Less Bonds Outstanding:** 

Public Facilities Bonds [6] 642,181 706,192 752,493 831,148 

Transportation Facilities Refunding Bonds [5] [6] _ 

Debt Issuance Margin for Section 9(b) 

General Obligation Bonds £ 17,648,445 £ 16,832,719 £ 16,229,442 £ 15,231,842 


Debt Applicable to Limit as a % Limit 3.51% 4.03% 4.43% 5.17% 


Additional Section 9(b) Debt Borrow ing Restriction: 

Four-year Authorization Restriction (25% of 9(b) Debt Limit) £ 4,572,656 £ 4,384,728 £ 4,245,484 £ 4,015,747 

Less 9(b) Debt authorized in past three fiscal years _ 

Maximum Additional Borrowing Restriction (amount that 

may be authorized by the General Assembly) _£_ 4,572,656 £ 4,384,728 £ 4,245,484 £ 4,015,747 


Section 9(c) General Obligation Debt Limit_ 

Debt Issuance Limit 

(1.15 times average tax revenues for three fiscal years) £ 18,290,626 £ 17,538,911 £ 16,981,935 £ 16,062,990 

Less Bonds Outstanding:** 

Parking Facilities Bonds [6] 16,036 17,045 17,538 18,383 

Transportation Facilities Bonds [6] 17,154 19,632 21,961 24,210 

Higher Educational Institution Bonds [6] 936,857 925,086 877,858 906,474 

Debt Issuance Margin for Section 9(c) 

General Obligation Bonds £ 17,320,579 £ 16,577,148 £ 16,064,578 £ 15,113,923 


Debt Applicable to Limit as a % Limit 


5.30% 5.48% 5.40% 5.91% 


**Bonds included on this schedule are only those which are backed by the full faith and credit of the Commonwealth. 

[1] Includes taxes imposed pursuant to Articles 2 and 9 of Chapter 3, Title 58.1 of the Code of Virginia. 

[2] Includes taxes imposed pursuant to Article 10 of Chapter 3, Title 58.1 of the Code of Virginia. 

[3] Includes taxes imposed pursuant to Chapter 6, Title 58.1 of the Code of Virginia, less taxes identified in Sections 58.1-605 and 58.1-638. 

[4] Debt limit applies only to debt authorized pursuant to Article X, Section 9(a)(2) of the Constitution of Virginia. 

[5] These bonds refunded certain Section 9(c) debt, and because the Governor did not certify the feasibility of the refinanced project, it must be 
applied against the Section 9(b) Debt Limit. 

[6] Beginning with fiscal year 2014, GASB Statement No. 65 removed deferrals of debt defeasance from the debt balances. Balances reported in 
prior fiscal years netted the deferrals against the debt balances. Net of unamortized discounts, premiums, and/or deferral on debt defeasance. 

Sources: Department of Accounts 

Department of the Treasury 


316 Common wealth of Virginia 





















































































2011 


2010 


2009 


2008 


2007 


2006 


£ 

9,944,370 

£ 

9,088,252 

£ 

9,481,109 

£ 

10,114,833 

$ 

9,787,592 

£ 

9,308,570 


822,259 


806,473 


648,033 


807,852 


879,575 


871,554 


3,190,452 


3,264,210 


3,116,831 


3,302,181 


3,274,286 


3,029,949 

$ 

13,957,081 

£ 

13,158,935 

$ 

13,245,973 

£ 

14,224,866 

$ 

13,941,453 

£ 

13,210,073 


$ 

13,453,996 

£ 

13,543,258 

£ 

13,804,097 

£ 

13,792,131 

£ 

13,071,436 

$ 

11,906,836 


$ 4,815,193 $ 4,539,833 $ 4,569,861 $ 4,907,579 $ 4,809,801 $ 4,557,475 

$ 4,815,193 $ 4,539,833 £ 4,569,861 $ 4,907,579 $ 4,809,801 $ 4,557,475 

0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 

$ 15,472,096 $ 15,574,747 $ 15,874,712 $ 15,860,950 $ 15,032,151 $ 13,692,862 

914,574 993,372 1,027,941 916,483 797,300 596,464 

__ 6,469 _ 12,696 _ 18,622 _ 24,263 _ 29,660 

£ 14,557,522 £ 14,574,906 £ 14,834,075 £ 14,925,845 £ 14,210,588 £ 13,066,738 

5.91% 6.42% 6.56% 5.90% 5.47% 4.57% 

£ 3,868,024 £ 3,893,687 £ 3,968,678 £ 3,965,238 $ 3,758,038 £ 3,423,215 

£ 3,868,024 £ 3,893,687 $ 3,968,678 £ 3,965,238 $ 3,758,038 £ 3,423,215 


£ 15,472,096 

£ 15,574,747 

£ 15,874,712 

£ 15,860,950 

£ 15,032,151 

£ 13,692,862 


19,445 

21,151 

6,527 

7,590 

8,804 

9,939 

26,355 

28,394 

30,358 

59,294 

69,962 

80,435 

765,280 

631,275 

573,550 

487,296 

411,842 

325,969 


£ 14,661,016 £ 14,893,927 $ 15,264,277 £ 15,306,770 £ 14,541,543 £ 13,276,519 


5.24% 4.37% 3.85% 


3.49% 3.26% 3.04% 


Commonwealth of Virginia 317 












































































































Schedule of Pledged Revenue Bond Coverage 
Primary Government 9(d) General Long-term Debt 


Last Ten Fiscal Years 

(Dollars in Thousands except Coverage) 








For the Fiscal 

Year Ended 

Beginning 

Balance, 

Pledged 

Operating 

Net 

Available 

for 

Debt Service 
Requirements (4) (5) (6) 



June 30, 

as restated (1) 

Revenues (2) 

Expenses (3) 

Debt Service 

Principal Interest 

Coverage 

Primary Government Revenue Bonds: 








Route 460 Funding Corporation of 

2015 

$ (20,991) 

$ 

$ 524 

$ (21,515) 

$ - $ 11,726 

(1.83) 

Virginia (5) (7) 

2014 

(8,958) 

- 

448 

(9,406) 

12,084 

(0.78) 

(Series 2012A and 2012B CAB) 

2013 

- 

- 

130 

(130) 

- 



Pocahontas Parkway Association (6) 

2015 

$ $ 

$ 

$ - $ 

- 

$ 

- 

- 

(Series 1998A-Dand 2001A) 

2014 







- 


2013 

- 

- 

- 

- 


- 

- 


2012 

- 

- 

- 

- 


- 



2011 

- 

- 

- 

- 


- 

- 


2010 









2009 

- 

- 

- 

- 


- 

- 


2008 









2007 

- 

- 

- 

- 


- 

- 


2006 

(140,294) 11,680 

30,214 

(158,828) 

- 


- 



(1) The Route 460 Funding Corporation of Virginia was restated due to the implementation of GASB Statement No. 65 in fiscal year 2014. 

(2) Bonds payable solely from toll revenues. 

(3) Operating expenses are exclusive of principal and interest. 

(4) Includes principal and interest of revenue bonds only. Does not include debt defeasance transactions. 

(5) This entity was established in fiscal year 2013. No debt service payments were required during fiscal year 2013. 

(6) This entity was established in 1999. The toll rights owned by the Pocahontas Parkway Association were sold on June 29, 2006; the 
association was relieved of any outstanding debt at that time and has no bonds outstanding at June 30, 2015, to report. 

(7) As discussed in Note 31, the Route 460 Funding Corporation of Virginia continuing operations will cease during fiscal year 2016. 

Source: Department of Accounts 


318 Common wealth of Virginia 




























Commonwealth of Virginia 319 






Schedule of Demographic and Economic Statistics 

Last Ten Fiscal Years 




Personal 


Public Primary 



Population 

Income 

Per Capita 

and Secondary 

Unemployment 

Fiscal Year 

In Thousands (1) 

In Thousands (2)(3) 

Income (3) 

School Enrollment 

Rate 


2015 

8,392 

$ 433,669,824 

$ 51,677 

1,279,773 

4.9 % 

2014 

8,332 

417,769,624 

50,140 

1,273,211 

5.2 % 

2013 

8,235 

404,405,716 

49,108 

1,264,880 

5.6 % 

2012 

8,178 

401,060,440 

49,041 

1,258,521 

6.0 % 

2011 

8,029 

384,652,808 

47,908 

1,253,038 

6.5 % 

2010 

7,886 

363,269,504 

46,065 

1,245,937 

7.0 % 

2009 

7,839 

353,248,764 

45,063 

1,236,546 

5.6 % 

2008 

7,758 

361,258,556 

46,566 

1,232,436 

3.4 % 

2007 

7,694 

343,226,264 

44,610 

1,221,939 

3.1 % 

2006 

7,623 

323,754,648 

42,471 

1,214,737 

3.2 % 


(1) Population figure for fiscal year 2015 is estimated. 

(2) Personal income amount for fiscal year 2015 is estimated. 

(3) Amounts for fiscal years 2006-2014 were revised to reflect the incorporation of newly available and revised source data, as well as improved 
estimating methodologies. 

Sources: Department of Education 

Department of Taxation 
Virginia Employment Commission 
U.S. Bureau of Economic Analysis 


Principal Employers (1) _ 

Current Year and Nine Years Ago 


Bnployer 

2014 Rank (2) 

2005 Rank 

U.S. Department of Defense 

1 

1 

Wal-Mart 

2 

2 

Fairfax County Public Schools 

3 

3 

Huntington Ingalls Industries, Inc. 

4 

4 

Sentara Healthcare 

5 

8 

Food Lion 

6 

5 

U. S. Postal Service 

7 

6 

County of Fairfax 

8 

7 

HCA Virginia Health System (3) 

9 

- 

U. S. Department of Homeland Defense (3) 

10 

- 


(1) The Virginia Employment Commission is precluded from disclosing the actual number of employees per the Confidential Information 
Protection and Statistical Efficiency Act - Title V of Public Law 107-347. All Employers above have an employment size of 1,000 or more. 

(2) Calendar year 2014 is the most recent information available. 

(3) Previous ranking not available. 

Source: Virginia Employment Commission (1) 


320 Commonwealth of Virginia 



































Commonwealth of Virginia 321 






State Employees by Function (1) 

Last Ten Fiscal Years 


2015 2014 2013 2012 2011 


General Government 

Virginia Information Technologies Agency 

260 

263 

270 

262 

261 

Department of Taxation 

855 

877 

873 

917 

976 

Department of General Services 

608 

614 

621 

624 

634 

All other 

1,675 

1,663 

1,677 

1,571 

1,936 

Education 

Colleges and Universities 

56,777 

56,086 

55,223 

53,979 

49,107 

All other 

2,634 

2,663 

2,662 

2,667 

3,287 

Transportation 

Department of Transportation 

7,372 

7,365 

7,212 

7,167 

7,024 

Department of Motor Vehicles 

2,023 

2,040 

1,999 

1,926 

1,949 

All other 

263 

198 

193 

190 

242 

Resources and Economic Development 

Department of Conservation & Recreation 

1,106 

747 

1,165 

933 

909 

Department of Environmental Quality 

826 

822 

779 

731 

743 

All other 

2,957 

2,950 

2,898 

2,957 

3,001 

Individual and Family Services 

Department of Health 

3,565 

3,593 

3,646 

3,784 

3,827 

Behavioral Health Agencies 

7,378 

7,629 

8,314 

8,803 

8,757 

All other 

5,505 

5,545 

5,804 

5,740 

5,576 

Administration of Justice 

Department of State Fblice 

2,773 

2,792 

2,779 

2,640 

2,627 

Department of Juvenile Justice 

2,086 

2,339 

2,405 

2,499 

2,380 

Correctional Facilities 

9,272 

9,922 

9,738 

9,656 

9,656 

All other 

6,505 

6,579 

6,606 

6,363 

6,262 

Business-type Activities 

Department of Alcoholic Beverage Control 

2,294 

2,272 

2,182 

3,306 

2,483 

Virginia Lottery 

284 

279 

275 

270 

267 

All other 

100 

94 

84 

81 

82 

State Total (2) 

117,118 

117,332 

117,405 

117,066 

111,986 


(1) Includes salaried and wage employees but excludes adjunct faculty. 

(2) Totals have been rounded and may vary slightly from the Department of Human Resource Management reports. 
Source: Department of Human Resource Management 


322 Commonwealth of Virginia 



















































2010 


2009 


2008 


2007 


2006 


295 

353 

377 

400 

453 

1,044 

947 

1,014 

927 

1,031 

654 

618 

624 

634 

621 

1,608 

1,918 

1,960 

1,915 

1,778 


47,981 

48,485 

48,032 

48,004 

47,371 

3,276 

3,551 

3,806 

3,811 

3,813 


6,852 

8,261 

8,680 

8,824 

9,338 

1,900 

1,931 

2,001 

2,044 

2,102 

233 

215 

239 

231 

110 


930 

953 

960 

753 

709 

768 

800 

842 

882 

870 

2,874 

3,334 

3,369 

3,412 

3,263 


3,856 

3,750 

3,800 

3,943 

3,817 

8,635 

8,355 

8,341 

8,361 

7,679 

5,622 

5,957 

5,550 

5,540 

6,424 


2,533 

2,671 

2,668 

2,700 

2,604 

2,442 

2,314 

2,457 

2,295 

2,312 

9,623 

10,437 

10,802 

10,456 

10,368 

6,314 

6,285 

6,441 

6,454 

5,382 


2,461 

2,581 

2,472 

1,938 

1,851 

257 

252 

241 

265 

261 

77 

74 

50 

48 

257 

110,235 

114,042 

114,726 

113,837 

112,414 


Commonwealth of Virginia 323 





































Operating Indicators by Function 

Last Ten Fiscal Years 


2015 


2014 


2013 


2012 


General Government 

Virginia Department of Taxation 

Number of Returns FVocessed (calendar year) (1) 

Not yet available 

7,575,225 

7,520,463 

7,446,060 

Department of Accounts 

Number of Payments Processed Via Check 

1,297,646 

1,466,309 

1,530,548 

1,624,902 

Number of Payments FVocessed Electronically 

9,047,340 

9,729,332 

9,552,890 

9,856,757 

Percentage Processed Electronically 

87.5% 

86.9% 

86.2% 

85.8% 


Education 

State Council of Higher Education 

Number of Students Enrolled at State-supported Colleges and Universities 

534,280 

537,370 

539,025 

535,294 

[Department of Education 

Number of Public Primary and Secondary School Enrollment 

1,279,773 

1,273,211 

1,264,880 

1,258,521 


Transportation 

Department of Transportation 

Number of Vehicles Paying Tolls for the Pocahontas Parkway (2) 

N/A 

N/A 

N/A 

N/A 


Resources and Economic Development 

Department of Environmental Quality 

Number of Permits Issued 

7,173 

5,890 

1,750 

4,063 

Number of Inspections Conducted 

7,848 

8,307 

9,044 

9,834 

Department of Housing and Community Development 

Number of Housing Units Improved to Define Standards through Housing Programs 

3,491 

3,677 

7,396 

7,279 

Department of Agriculture and Consumer Services 

Number of Food Inspections Conducted 

5,583 

8,886 

10,441 

12,966 

Number of Weights/Measure Equipment Inspected 

82,355 

76,342 

62,488 

68,292 

Department of Forestry 

Number of Firefighters Trained in Forest Fire Control 

1,178 

1,233 

1,197 

1,178 


Individual and Family Services 

Comprehensive Services for At-Risk Youth and Families 

Number of Youth Served 

15,700 

15,025 

13,516 

15,425 

Department for Aging and Rehabilitative Services 

Number of Medicare Recipients 

1,328,435 

1,203,462 

1,244,136 

1,190,827 

Department of Medical Assistance Services 

Number of Medicaid Recipients 

1,255,960 

1,177,922 

1,046,790 

996,835 

Department of Behavioral Health and [Developmental Services (3) 

Number of Patients Served 

2,229 

2,269 

2,455 

2,608 

Number of Beds Used 

2,813 

2,822 

3,071 

3,471 

Department of Social Services 

Average Nurhber of Households Receiving Food Stamps 

411,768 

451,640 

453,244 

434,223 

Number of Households Receiving Child Support Enforcement Assistance 

314,377 

320,942 

347,729 

349,661 

Department of Health 

Number of WIC Participants 

249,499 

244,181 

267,465 

270,962 

Number of Childhood Immunizations Administered 

1,534,373 

1,675,572 

1,736,396 

1,439,233 


324 Commonwealth of Virginia 





















































2011 


2010 


2009 


2008 


2007 


2006 


6,969,581 

6,998,747 

7,079,611 

6,893,047 

6,746,596 

7,860,850 


1,658,227 

1,625,763 

1,715,164 

2,597,746 

1,431,918 

1,522,865 

9,912,627 

11,141,067 

10,059,109 

8,065,038 

2,861,979 

2,684,123 

85.7% 

87.2% 

85.4% 

75.6% 

66.7% 

63.8% 


519,772 

501,866 

467,093 

449,671 

428,642 

412,336 


1,253,038 

1,245,937 

1,236,546 

1,232,436 

1,221,939 

1,214,737 


2,486 2,780 1,925 2,389 3,491 2,011 

10,441 11,804 11,599 11,721 11,730 10,471 

7,675 7,231 5,198 3,248 3,392 3,459 

12,003 13,516 14,639 17,551 14,623 16,350 

66,760 53,329 57,275 84,481 77,921 101,471 


1,192 


1,123 


1,034 


1,200 


1,300 


1,000 


16,617 

17,242 

17,957 

19,658 

18,498 

16,722 


1,143,243 

1,122,522 

1,104,765 

1,071,681 

1,039,059 

1,010,487 


992,816 

937,522 

857,662 

818,452 

805,458 

812,796 


2,724 

2,754 

2,877 

2,915 

3,003 

3,033 

3,317 

3,396 

3,533 

2,891 

2,988 

3,499 


396,613 

350,599 

277,498 

240,821 

228,116 

223,116 

352,825 

359,317 

359,487 

359,977 

363,272 

361,909 


270,219 275,580 270,378 258,593 270,918 247,386 

1,773,402 1,602,907 1,470,403 1,455,166 1,076,412 1,093,450 


Continued on next page 


Commonwealth of Virginia 325 








































Operating Indicators by Function (Continued from previous page) 
Last Ten Fiscal Years 



2015 

2014 

2013 

2012 

Administration of Justice 

Supreme Court 

Number of Criminal Trials (calendar year) 

686,795 

699,270 

720,630 

708,943 

Number of Civil Trials (calendar year) 

1,171,042 

1,232,899 

1,264,219 

1,299,053 

Number of Traffic Hearings (calendar year) 

1,903,845 

1,887,252 

1,891,207 

1,956,836 

Compensation Board 

Number of Constitutional Officers Receiving Financial Support 

650 

649 

651 

650 

Department of State Police 

Number of Traffic Citations Issued (calendar year) 

644,218 

686,812 

588,307 

550,122 

Number of Arrests (calendar year) 

20,608 

21,777 

19,611 

19,460 

Department of Corrections 

Number of Inmates 

30,258 

30,275 

29,803 

29,685 


Business-type Activities 

Virginia Lottery 

Number of Rays Sold - Rck 3 

272,253,482 

265,144,318 

253,682,839 

243,270,273 

Number of Rays Sold - Rck 4 

268,645,030 

244,143,030 

232,184,205 

222,774,015 

Number of Rays Sold - Cash 5 

29,895,533 

30,114,799 

28,302,849 

26,677,286 

Number of Rays Sold - Megamillions 

94,283,607 

115,298,827 

89,518,093 

140,240,940 

Number of Rays Sold - Win for Life (4) 

2,979,902 

14,870,716 

15,950,166 

17,682,922 

Number of Rays Sold - Lotto South (4) 




- 

Number of Rays Sold - Millionaire Raffle (5) 

6,600,000 

6,600,000 

6,945,500 

6,625,456 

Number of Rays Sold - Fast Ray Bingo (5) 

24,205,141 

20,095,274 

16,581,338 

12,094,785 

Number of Rays Sold - Row erball (6) 

96,580,238 

113,724,880 

145,690,841 

89,046,990 

Number of Rays Sold - Decades of Dollars (7) 

9,365,110 

12,236,092 

13,243,504 

15,467,376 

Number of Rays Sold - Money Ball (8) 

16,766,958 

- 

- 

- 

Number of Rays Sold - Cash 4 Life (8) 

3,812,708 



- 

Number of Tickets Sold - Instant Tickets 

1,018,488,394 

988,592,675 

887,139,810 

842,121,604 

Virginia College Savings Plan 

Number of Virginia529 prePAID Tuition Contractholders 

66,364 

70,490 

68,637 

69,847 

Virginia Employment Commission 

Number of Individuals Receiving Unemployment Benefits 

92,762 

115,155 

127,091 

136,753 

New Unemployment Benefit Claims 

202,040 

253,310 

284,218 

318,935 


(1) Information for fiscal year 2015 is not yet available. 

(2) The assets of the Pocahontas Parkway Association, including the rights and obligations to manage, operate, maintain and collect tolls, were 
sold in June 2006. Therefore, this information is not available subsequent to fiscal year 2006. 

(3) This agency is structured to provide services primarily in a community setting. Although they have a significant amount of capital and operating 
costs in facility operations, inpatient treatment methodology is being deemphasized over time. Their inpatient census will continue to decline in 
the future. Over $250 million of community funding (state and Federal dollars) each fiscal year supports 40 community services boards across 
the Commonwealth. These entities serve approximately 300,000 Virginians each year. 

(4) Win for Life replaced Lotto South during fiscal year 2006. 

(5) Fast Play Bingo and Millionaire Raffle began during fiscal year 2007; therefore, information for fiscal year 2006 and prior years is not available. 

(6) Powerball began during fiscal year 2010; therefore, information for fiscal year 2009 and prior years is not available. 

(7) Decades of Dollars began during fiscal year 2011; therefore, information for fiscal year 2010 and prior years is not available. 

(8) Money Ball and Cash 4 Life began during fiscal year 2015; therefore, information for fiscal year 2014 and prior years is not available. 


326 Commonwealth of Virginia 







































2011 


2010 


2009 


2008 


2007 


2006 


697,360 

705,777 

731,609 

741,701 

733,714 

710,380 

1,289,633 

1,372,483 

1,397,850 

1,366,596 

1,335,192 

1,327,296 

2,069,668 

2,143,109 

2,050,896 

2,019,753 

1,973,047 

1,971,413 


650 


567,480 

686,173 

647,396 

652,837 

646,166 

600,121 

20,132 

22,713 

23,996 

22,475 

23,348 

22,622 


32,116 

31,735 

32,708 

33,157 

31,647 

31,072 



241,963,816 

246,899,030 

250,634,329 

256,605,411 

265,398,821 

257,008,607 


207,174,550 

197,460,420 

185,418,033 

183,990,214 

179,922,714 

169,761,961 


26,657,009 

28,242,740 

29,267,637 

29,022,974 

27,520,707 

27,723,536 


138,496,457 

174,882,294 

162,095,735 

166,144,927 

130,299,581 

159,665,341 


21,052,138 

28,440,948 

32,128,730 

37,717,958 

41,323,625 

17,529,322 

44,322,641 


6,600,000 

6,600,000 

8,905,555 

8,798,720 

13,005,307 

- 


8,915,566 

6,884,748 

6,772,764 

9,229,805 

6,600,000 

- 


66,614,340 

34,562,352 

- 

- 

- 

- 

8,377,354 ..... 

. 



756,837,222 

711,155,383 

690,382,366 

694,902,491 

698,271,837 

689,315,033 



70,955 

71,373 

71,898 

71,812 

71,382 

70,006 



162,025 

190,370 

219,646 

122,144 

106,554 

110,881 

■ 

360,657 

418,431 

474,777 

279,939 

260,804 

260,381 


Sources: Compensation Board 

Comprehensive Services for At-Risk Youth and Families 

Department for Aging and Rehabilitative Services 

Department of Agriculture and Consumer Services 

Department of Behavioral Health and Developmental Services 

Department of Corrections 

Department of Education 

Department of Environmental Quality 

Department of Forestry 

Department of Health 

Department of Housing and Community Development 

Department of Medical Assistance Services 

Department of Social Services 

Department of State Police 

Department of Taxation 

Department of Transportation 

State Council of Higher Education 

Supreme Court 

Virginia College Savings Plan 

Virginia Employment Commission 

Virginia Lottery 


Commonwealth of Virginia 327 































Capital Asset Statistics by Function (1) 

Last Ten Fiscal Years 


2015 


2014 


2013 


2012 


General Government 

Department of General Services 

Number of Buildings 

65 

63 

62 

62 

Total Square Footage of Buildings 

5,032,991 

5,026,991 

4,961,416 

4,961,416 

Vehicles 

14,669 

14,769 

14,424 

14,161 

Education 

State Council of Higher Education 

Campuses of In-State Institutions 

231 

276 

252 

262 

Campuses of Out-of-State Institutions 

132 

146 

142 

158 

Transportation 

Department of Transportation 

Bridges Maintained (1) 

Not yet available 

13,089 

13,049 

13,042 

State Maintained Highway Lane Miles (calendar year) (1) 

Not yet available 

72,089 

71,937 

71,779 

Vehicles 

7,503 

7,768 

7,762 

7,797 

Number of Buildings (2) 

3,492 

3,488 

3,501 

3,487 

Total Square Footage of Buildings 

8,269,556 

8,158,974 

8,119,018 

7,830,447 

Resources and Economic Development 

Department Conservation & Recreation 

State Parks 

39 

37 

37 

37 

Acres of State Parks (in thousands) 

71 

68 

67 

69 

Natural Area Preserves 

39 

39 

39 

39 

Acres of Natural Area Preserves (in thousands) 

34 

34 

35 

31 

Historic Sites 

3 

3 

3 

3 

Acres of Historic Sites (in thousands) 

0.3 

0.3 

0.3 

0.3 

Number of Buildings (3) 

1,360 

1,345 

1,345 

1,164 

Total Square Footage of Buildings 

2,583,309 

2,560,662 

2,560,662 

1,152,257 

Department of Forestry 

State Forests 

23 

23 

23 

22 

Buildings 

295 

295 

295 

295 

Total Square Footage of Buildings 

600,602 

600,602 

600,602 

600,602 

Individual and Family Services 

Department of Behavioral Health and Developmental Services 

Number of Buildings 

409 

409 

408 

407 

Total Square Footage of Buildings 

5,571,068 

5,534,625 

5,523,762 

5,169,937 

Administration of Justice 

Department of State Police 

Number of Stations 

65 

65 

65 

65 

Number of Buildings 

147 

147 

148 

144 

Total Square Footage of Buildings 

685,109 

685,109 

681,987 

562,736 

Department of Corrections 

Number of Buildings 

1,823 

1,843 

1,881 

1,858 

Total Square Footage of Buildings 

11,826,751 

11,799,780 

11,889,055 

11,872,765 

Business-type Activities 

Department of Alcoholic Beverage Control 

Number of Buildings 

24 

24 

24 

25 

Total Square Footage of Buildings 

1,180,501 

1,180,501 

1,180,501 

1,185,501 


(1) Information not yet available for fiscal year 2015. Some prior year amounts have been updated based on revised information from the Virginia 
Department of Transportation. 

(2) Includes storage sheds 

(3) Includes cabins 


328 Commonwealth of Virginia 





















































2011 


2010 


2009 


2008 


2007 


2006 


54 55 48 48 47 45 

5,259,506 5,053,912 4,718,480 4,409,026 4,358,746 4,236,832 

13,983 13,534 13,322 13,262 12,779 11,841 


250 244 254 258 207 116 

166 121 87 67 63 110 



12,926 

12,949 

12,912 

12,603 

12,603 

12,603 


71,668 

71,561 

71,349 

71,091 

70,784 

70,105 


7,593 

7,734 

8,185 

9,060 

9,443 

9,952 


3,520 

3,513 

3,526 

3,562 

3,595 

3,582 


7,916,019 

7,713,617 

7,683,384 

7,734,267 

7,750,199 

7,624,896 



37 

37 

37 

37 

37 

34 


69 

71 

69 

68 

67 

66 


39 

39 

39 

38 

35 

34 


30 

30 

29 

28 

25 

25 


3 

3 

3 

3 

3 

3 


0.3 

0.3 

0.3 

0.3 

0.3 

0.3 


1,164 

1,164 

1,168 

991 

991 

989 


1,152,257 

1,152,257 

1,154,487 

1,223,427 

1,223,427 

1,284,589 



22 

19 

19 

19 

17 

17 


295 

295 

295 

295 

295 

283 


600,602 

600,602 

600,602 

600,602 

600,602 

587,838 



429 

438 

435 

441 

449 

446 


5,901,505 

5,744,389 

5,743,088 

6,037,953 

6,161,843 

6,263,527 



65 

64 

66 

66 

66 

66 


145 

145 

145 

145 

143 

143 


562,736 

562,736 

550,736 

550,736 

526,617 

526,617 



1,820 

1,835 

1,826 

1,817 

1,809 

1,812 


11,771,319 

11,920,234 

12,160,909 

11,963,087 

11,787,810 

11,102,021 


25 


25 


24 


22 


21 


1,185,501 


1,185,501 


1,142,273 


787,348 


784,548 


22 

789,548 


Sources: Department of Conservation and Recreation 

Department of Forestry 
Department of Motor Vehicles 
Department of State Police 


Department of Transportation 

Department of the Treasury 

State Council of Higher Education for Virginia 


Commonwealth of Virginia 329 







































Employees of the Department of Accounts 


Deborah J. Abbott — Marla L. Anderson — Debra B. Bartinikas — Kayla B. Barton — Kimberly E. Barton — Pamela P. Benos — 
Myra K. Blair — Kristen Bolden — Henry A. Bosman — Hope A. Broughman — Donna R. Brown — Maria A. Bryant — Rudy B. 
Burgess — DeAnna S. Burton — Rebecca G. Burton — Amy C. Butler — George W. Byrd — William H. Campbell — Adrian L. 
Carr — David W. Clark — Kevita L. Clayborne — Deborah S. Clayton — Sharon H. Cole — Shauntell D. Cox — Teresa P. Cox — 
Monica T. Darden — Keadra S. Dorman — Geneva G. Douglass — Bryan L. Duffee — Sarah B. Duncan — Valerie Dunmars- 
Hurdle — Robert D. Eddleton — Christine K. Elam — Constance H. Fisher — Lanine M. Fisher — Gwendolyn T. Fleming — 
Abigail C. Folliard — LaTanya M. Foreman — Wayne A. Gabbert — Lora L. George — Hannah M. Goodman — Cathy P. Gravatt 

— Shannon M. Gulasky — Denise L. Halderman — Michael D. Hall — Michael J. Hall — Geraldine E. Hayes — Tanesha N. Hill — 
Aimee N. Holland — Tiffany D. Hopkins — Robbin C. Huddleston — Rhonda S. Hutsell — Ashlyn S. Jinnette — Connie T. Jones 

— Diana W. Jones — Marcy D. Jones — Shirleen L. Jones — Susan L. Jones — Lance O. Kaeberle — Christopher K. Kain — 
Jane V. Kearney — Esther Kim — Sharon H. Lawrence — Verna P. Left — Betsy M. Lewerenz — Steven W. Lewerenz — Alex C. 
Link — Lewis R. McCabe, Jr. — Andrew C. McCarty — Nilca K. McClatchie — Stacy D. McCracken — Cathy C. McGill — Carlton 
McKinnon — JoAnne T. Macklin — Marianne P. Madison — Keeya L. Majors — Nancy W. Martin — Joan K. Matanic — Cynthia D. 
Matthews — William E. Matthews — Thomas E. Mays — Amanda R. Morris — Sandra Muir — Sarah K. Nearhood — Alice F. 
Newell — True T. Nguyen — Dirk K. North — Austin F. Oakes — Catherine E. O’Brien — Anne C. Pace — Douglas N. Page — 
Sara L. G. Page — Aneri Patel — Melinda L. Pearson — Richard M. Perconte — Kimberly T. Phillips — Frank J. Pitera — David E. 
Porter — Donna K. Rabender — Robert E. Ramey — S. Renai Reinholtz — Norma J. Roberts — Patrice A. Robinson — Nikiesha 
L. Roney — Catherine A. Royal — Richard L. Salkeld — Timothy N. Sartini — Linda W. Scott — Annette M. Sherrill — Andrew 
Short — Felecia S. Smith — Katrina Solomon — John J. Sotos — Jamie Z. Spears — Erin E. Sprouse — Fredrica J. Spurlock — 
Christina A. Stickler — Laura L. Swecker — Pamela W. Tauer — Joseph J. Teleoglou — Patricia Thompson — Andrea P. 
Thornton — Imelda B. Tran — M. Christy Tuck — Jean S. Turlington — David A. Von Moll — Denise B. Waddy — Nekheeta S. 
Washington — Lynn K. Watley — Kim G. Webster — Kimberly N. White — Matthew K. Wiggins — Lori L. Williams — Penny B. 
Williams — Raymond L. Williams, Jr. — Taylor E. Williams — Vera D. Williams — Lisa Wilson — Pamela M. Wingfield — Elizabeth 
J. Winsheimer — Kim G. Wood — Jennifer A. Wykoff — Carol H. York — Janet L. Yu 


Desktop Publishing and Graphics: 
Marianne P. Madison, Financial Reporting Analyst 
and Knowledge Center Administrator 
Financial Reporting, Virginia Department of Accounts 

This report was prepared by staff of the Virginia Department of Accounts 
and printed on a Konica Minolta 554e at a cost of $3.82 per copy. 

This report is available for download from the World Wide Web. 

Our Internet address is www.doa.virginia.gov. 


330 Commonwealth of Virginia